QXO Stock Rises as Baird Latest to Initiate Coverage With Bullish Price Target

Shares of QXO (QXO) gained Thursday as Baird initiated coverage of the roofing, waterproofing, and building products distributor with an “Outperform” rating and a rosy price target.

Baird initiated coverage of the Greenwich, Conn.-based firm with a $32 price target—60% above Wednesday’s closing level of $19.95. Led by CEO Brad Jacobs, “QXO management has a proven, repeatable playbook across multiple public companies and industries, which we expect will lead to significant value creation and outperformance in the shares,” Baird wrote.

Baird is the third firm in recent days to begin covering QXO, which in late April closed a deal to acquire Beacon Building Products for roughly $11 billion in cash.

Last Friday, Wolfe Research initiated coverage with an “Outperform” rating and $44 price target. “We believe QXO provides investors superior organic EBITDA growth and a unique M&A value creation opportunity as the company disrupts the Building Products Distribution landscape,” analysts wrote.

Yesterday, Oppenheimer issued an “Outperform” rating and $27 price target to QXO’s stock. “We view Beacon favorably as QXO’s original building block on its path to ultimately becoming a targeted $50B revenue leader in building products distribution,” analysts said.

QXO shares advanced less than 2% in recent trading. The stock has soared 55% since March 19, the day before the firm announced the Beacon Roofing Supply acquisition.