QXO initiated with an Outperform at William Blair

William Blair initiated coverage of QXO (QXO) with an Outperform rating. The firm believes QXO will become one of the largest players in the $800B building products distribution industry. Building products distribution is the “perfect industry” for Brad Jacobs, who has a “repeatable playbook for customer-centric cultures, accretive M&A, and operational excellence,” the analyst tells investors in a research note. Blair expects QXO will buy another large distributor soon. It anticipates mid-single-digit organic growth, sizable acquisitions, and 16% EBITDA margins by 2035, and sees the stock doubling to $40.