Oppenheimer has assigned an Outperform rating and set a $27 price target for QXO, following the closure of its key acquisition of Beacon Roofing Supply. This strategic move is viewed as a foundational step for QXO, which aims to position itself as a $50 billion revenue leader in the building products distribution sector. Beacon, recognized for its extensive North American distribution network, is a dominant player in its field, with a focus on roofing, which benefits from substantial non-discretionary repair and re-roofing activities.
The investment firm expects QXO to double Beacon's adjusted EBITDA to $2 billion by 2030 through a series of technology-driven operational improvements. Additionally, Oppenheimer predicts that QXO will reach a total adjusted EBITDA of $4.5 billion in 2030, combining organic growth with additional acquisitions.
