In a report released yesterday, Christopher Snyder from Morgan Stanley maintained a Buy rating on QXO Inc, with a price target of $35.00.
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Christopher Snyder has given his Buy rating due to a combination of factors that highlight QXO Inc’s potential for significant growth and value creation. The company’s strategic focus on improving the performance of acquired businesses, particularly BECN, and executing on a robust M&A pipeline positions it well for future success. QXO aims to transform into a $50 billion leader in building products distribution, a substantial increase from its current $10 billion status, driven by the leadership of Brad Jacobs and the management team.
Key opportunities identified include addressing inefficiencies in BECN’s operations, such as lagging industry volumes and an inefficient store footprint. The potential to rationalize store count and enhance performance per location is significant, especially considering the declining revenue per location despite an expanded store count. These factors, combined with the broader market dynamics and QXO’s strategic initiatives, underpin Snyder’s optimistic outlook and Buy rating for the stock.
According to TipRanks, Snyder is a 4-star analyst with an average return of 8.6% and a 55.62% success rate. Snyder covers the Industrials sector, focusing on stocks such as Rockwell Automation, Emerson Electric Company, and WW Grainger.