William Blair analyst Ryan Merkel has maintained their bullish stance on QXO stock, giving a Buy rating on August 13.
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Ryan Merkel has given his Buy rating due to a combination of factors that indicate a positive outlook for QXO Inc. Despite the recent acquisition of Beacon, which QXO has not owned for long, the integration process is reportedly exceeding initial expectations. This suggests potential for operational improvements that could enhance QXO’s performance in the future.
Furthermore, the company’s strategic initiatives, including potential mergers and acquisitions, are expected to bolster growth. Although current residential volumes are slightly down, commercial volumes have shown an increase, which could offset some of the declines. Additionally, while gross margins are currently stable, pricing and procurement strategies are anticipated to positively impact results by 2026. Overall, these elements contribute to a favorable long-term growth trajectory for QXO Inc., justifying the Buy rating.
In another report released on August 13, Stephens also initiated coverage with a Buy rating on the stock with a $29.00 price target.