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Investing.com - Raymond James initiated coverage on QXO Inc (NASDAQ:QXO) with an Outperform rating and a $28.00 price target, citing the company’s ambitious growth strategy following its acquisition of Beacon Roofing Supply. According to InvestingPro data, QXO has demonstrated strong momentum with a 50% return over the past year, though current metrics suggest the stock is trading above its Fair Value.
The investment firm views QXO’s platform within building products distribution as supportive of its long-term goal to become a $50 billion revenue company. QXO aims to double Beacon’s EBITDA over the next five years through organic growth initiatives. The company’s current revenue stands at $1.95 billion, with analysts forecasting sales growth of 124% this year. InvestingPro analysis reveals 13 additional key insights about QXO’s growth potential.
Raymond James highlighted founder and CEO Brad Jacobs’ extensive history in successfully consolidating large, fragmented industries and creating significant shareholder value. The firm expects Beacon to be the first of several acquisitions of scale as QXO pursues its growth strategy.
The investment firm described QXO shares as an "asymmetrically favorable setup" but noted its enthusiasm is "partially tempered by potential execution risk" that could challenge the company’s proof of concept.
Raymond James also pointed to concerns about the building products distribution business being historically "price-taker/commoditized/cyclical" and noted the current valuation suggests the market already assumes QXO will deliver on its Beacon-related financial goals.
In other recent news, QXO Inc. reported impressive second quarter 2025 financial results. The company posted adjusted earnings per share of $0.11, significantly surpassing analyst expectations of $0.04. Revenue also exceeded forecasts, reaching $1.91 billion compared to the consensus estimate of $1.88 billion. In addition to these financial achievements, Morgan Stanley initiated coverage of QXO with an Overweight rating and set a price target of $35. The investment bank highlighted QXO’s potential as an emerging building products distributor with plans to significantly increase its revenue. Morgan Stanley sees the U.S. industrial distribution sector as a promising area for consolidation due to its fragmented nature. These developments reflect recent strategic and financial progress for QXO.
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