Asia stocks rise: Japan surges on Takaichi bets, China buoyed by positive GDP
Investing.com - Truist Securities reduced its price target on QXO Inc (NASDAQ:QXO) to $28.00 from $30.00 on Thursday, while maintaining a Buy rating on the stock. The new target represents a 40% upside from the current price of $19.95, with InvestingPro data showing the stock has demonstrated significant volatility with a beta of 2.2.
The price target adjustment comes amid weakness in roofing volumes in recent months, which Truist Securities attributes to a lack of strong storm activity and weaker new construction trends.
The investment firm also expressed concerns that winter months will likely see inventory reductions in distribution channels, which could negatively impact production for roofing materials manufacturers.
Truist Securities expects weak pricing to emerge as the industry readjusts to proper levels ahead of the 2026 season, creating additional headwinds for companies in the sector.
Despite the reduced price target, the firm maintained its Buy rating on QXO stock, noting that the company remains focused on M&A activity "which could occur at any time."
In other recent news, QXO Inc. reported impressive second-quarter results, with adjusted earnings per share of $0.11, significantly exceeding analyst expectations of $0.04. The company’s revenue also surpassed forecasts, reaching $1.91 billion compared to the consensus estimate of $1.88 billion. This financial performance highlights QXO’s robust growth trajectory. Additionally, QXO’s strategic acquisition of Beacon Roofing Supply has drawn attention, as Raymond James initiated coverage with an Outperform rating, citing the company’s ambitious growth strategy. The firm aims to double Beacon’s EBITDA over the next five years through organic growth initiatives. KeyBanc has also initiated coverage on QXO with an Overweight rating, pointing to the company’s long-term growth and margin expansion potential. Morgan Stanley joined these assessments, also giving QXO an Overweight rating, highlighting its plans to consolidate within the U.S. industrial distribution sector. These recent developments underscore the positive outlook from analysts regarding QXO’s future prospects.
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