Christopher Snyder, an analyst from Morgan Stanley, has initiated a new Buy rating on QXO Inc (QXO).
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Christopher Snyder’s rating is based on QXO Inc’s strategic positioning in a fragmented industry with significant growth potential. The company’s plan to consolidate its way to over $50 billion in revenue is supported by a management team with a proven track record of value creation, particularly under the leadership of Brad Jacobs, known for his successful ventures in the industrial sector.
QXO’s business model leverages its scale to enhance acquired businesses through technology and best practices, creating a value creation flywheel that is not dependent on macroeconomic conditions. This approach is expected to significantly increase equity value and provide a strong return on investment. Despite these strengths, QXO’s shares are currently trading at a discount compared to its peers, making it an attractive investment opportunity with a high compound annual growth rate in EBITDA projected through the decade.
In another report released on August 22, Benchmark Co. also initiated coverage with a Buy rating on the stock with a $50.00 price target.