Morgan Stanley Starts QXO Inc (QXO) at Overweight

Morgan Stanley analyst Christopher Snyder initiates coverage on QXO Inc (NASDAQ: QXO) with a Overweight rating and a price target of $35.00.

The analyst comments: "Initiate coverage of QXO, an emerging building products distributor w/ plans to consolidate its way to $50B+ revenue, with an Overweight rating and $35 PT. We have long viewed US industrial distribution as a prime roll-up candidate — the industry is highly fragmented, resulting in a large swath of sub-scale competitors who are simply unable to invest in Tech driven solutions. Investments in efficiency not only lower the distributor's cost to serve but these solutions also improve customer profitability which then pushes more wallet share back to said distributor — this is the flywheel and with an $800B TAM and no single player above MSD market share, the runway is significant. Enter QXO and Brad Jacobs — perhaps the best acquirer that US Industrials has ever seen w/ a long & established track record of value creation (XPO, URI, WM). With a clear market opportunity, the right leaders at the help and an equity trading at a discount to premium US distributor peers despite best in class EBITDA CAGR, initiate OW."

For an analyst ratings summary and ratings history on QXO Inc click here. For more ratings news on QXO Inc click here.

Shares of QXO Inc closed at $13.71 yesterday.

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