William Blair analyst Ryan Merkel has maintained their bullish stance on QXO stock, giving a Buy rating on October 20.
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Ryan Merkel has given his Buy rating due to a combination of factors that reflect positively on QXO Inc’s performance and potential. The company’s third-quarter financial results aligned with expectations and slightly exceeded broader market projections, indicating a stable performance amidst industry challenges. Despite a decline in residential and complementary product volumes, QXO managed to achieve price increases in these segments, demonstrating effective pricing strategies.
Looking ahead, Ryan Merkel anticipates that QXO’s strategic initiatives, such as improvements in pricing and sales execution, procurement, and inventory management, will significantly enhance its performance by 2026. The expectation of a substantial organic EBITDA margin expansion over the next five years further supports the Buy rating. Additionally, concerns about competition and market saturation are considered exaggerated, given the vast and fragmented nature of the building products distribution market, which presents ample opportunities for growth.
In another report released on October 20, Vertical Research also initiated coverage with a Buy rating on the stock with a $30.00 price target.