William Blair analyst Ryan Merkel has maintained their bullish stance on QXO stock, giving a Buy rating yesterday.
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Ryan Merkel has given his Buy rating due to a combination of factors that suggest long-term potential for QXO Inc. Despite lowering estimates for the upcoming quarters based on a softer roofing survey, Merkel anticipates that the company’s strategic initiatives will drive significant improvements by 2026.
Merkel believes that QXO’s efforts in enhancing pricing and sales execution, procurement, inventory management, and technology upgrades will eventually yield positive results. Additionally, he views concerns about price discipline and competition as overstated, given the vast and fragmented nature of the building products distribution market. Investors are encouraged to take advantage of any temporary setbacks to increase their holdings in QXO.
In another report released yesterday, Truist Financial also maintained a Buy rating on the stock with a $28.00 price target.