William Blair analyst Ryan Merkel has maintained their bullish stance on QXO stock, giving a Buy rating on July 20.
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Ryan Merkel’s rating is based on QXO Inc’s strategic vision and recent business developments. The company has recently completed the acquisition of Beacon, which aligns with its goal to become a tech-enabled leader in the substantial $800 billion building products distribution industry over the next decade. This acquisition is expected to lay the groundwork for margin acceleration by 2026, indicating a promising future for the company.
Despite a modest 2% growth in the second-quarter roofing survey, which was slightly below expectations, the company shows resilience in pricing, with residential pricing holding steady. Additionally, the anticipation of another merger or acquisition deal suggests potential for further growth and expansion. These factors contribute to a positive outlook for QXO, justifying the Buy rating.
In another report released on July 20, RBC Capital also initiated coverage with a Buy rating on the stock with a $33.00 price target.