Benchmark starts QXO with a Buy on ‘winning’ consolidation formula

As previously reported, Benchmark initiated coverage of QXO (QXO) with a Buy rating and $50 price target The firm thinks the market is “far too focused” on the first asset purchased by QXO, namely Beacon Roofing earlier this summer, and “not focused enough” on what this “could and likely will look like in relatively short order,” noting that its model suggests QXO can exceed $30B in revenue, $4.5B in EBITDA, and $2.00 of EPS by 2030. The firm, which believes the building products distributor’s plan to expand across three to four verticals is “a winning formula not many can replicate,” would not wait for the next deal(s) to “see where the business and stock are headed,” the analyst added.