Lead photo by MDM

It’s been a heck of a 2025 first half for QXO.

The building materials distributor began trading on the New York Stock Exchange in January of this year before making a industry mega-splash by acquiring roofing and other building materials distributor Beacon at the end of April for $11 billion.

Now, the innovation-driven company is receiving bullish stock price targets from several financial services providers as they initiate analyst coverage.

Wolfe Research kicked it off on June 6 with an outperform rating and a price target of $44 — soaring above the $17 mark that the stock had hovered around since May 21. News of that rating sent QXO up to $19 on June 6, and it’s since held at $20 as of the afternoon of June 13.

Oppenheimer released its QXO initiation report on June 11, in which it upgraded QXO to outperform territory with a $27 price target, and Baird followed a day later with its price target of $32.

QXO’s share price opened at $14 on its first day of trading on Jan. 17, when Founder, Chairman and CEO Brad Jacobs rang the NYSE opening bell along with the rest of the QXO team. The company did so again when it closed the Beacon acquisition on April 30.

So, What’s Driving These Outperform Ratings?

In their initiation reports, Wolfe, Oppenheimer and Baird each provided commentary that supported their aggressive price target for QXO. A sampling of each is below:

Wolfe

• “We believe QXO offers investors a superior EBITDA growth story, both through organic EBITDA growth via operational improvements and accretive M&A.”
• “We believe the company’s significant growth profile, both organic and inorganic, supports our selection of a 17X multiple.”
• “Our $44 price target clearly implies notable upside, which we believe is warranted given our expectation for the company to generate more than $4.5B in EBITDA by 2030.”
• “We expect QXO will be a tech-forward player, driving both revenue growth and margin improvement as well as creating competitive advantages.”
• “Speaking with management, we sense the company is seeking to ‘Create a Superorganism’ with end-to-end intelligent capabilities that uses data to drive quick and efficient decision-making.”
• “We expect digital sales to eventually approach 50% of sales, providing a margin tailwind in the process.”

Oppenheimer

• “Beacon is a solid cornerstone asset, providing QXO a national base of distribution locations from which it can leverage future growth in a distribution vertical that is highly resilient in nature.”
• “Our 2030 adjusted EBITDA estimate for QXO is $4.5 billion, which represents a 30% CAGR from Beacon’s adjusted EBITDA of $930 million in 2024.”
• “QXO is not patching legacy systems, it is combining proprietary tools with best-in-class platforms.”
• “We view solid probability QXO delivers upon its multi-year financial targets. This stems from our familiarity with past Jacobs endeavors, observation of investors’ confidence (strong demand for QXO’s multiple equity issuances) in a now proven self-improvement organic growth playbook supplemented by acquisitions, and QXO’s tactical proficiency in obtaining its initial objectives, such as the process it executed in acquiring Beacon and raising numerous forms of capital.”

Baird

• “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.”
• “Beyond Jacobs, the senior management team has a deep/capable bench with expertise in AI/technology, finance, supply chain and other disciplines, and management compensation is highly incentivized to drive shareholder returns.
• “We believe the company’s share gains will be driven by a combination of better lead generation/tracking (including use of agentic AI); improved accountability/productivity of outside sales reps; expansion of the inside salesforce; establishment of a national call center to focus on ~35k dormant/churn accounts and cold calling; segmentation of salesforce roles between “hunters” and “farmers”; increased inside sales headcount; improved service from enhanced stocking levels of “A items” and better inventory/demand planning (augmented by AI tools); and greater cross selling from a realignment of compensation plans.”

QXO Debuts on MDM Top Distributors

With Beacon acquired and its branding replaced with QXO’s, the latter made its initial appearance on MDM’s 2025 Top Distributors, ranked No. 4 on our list for Building Materials/Construction Distributors. On the strength of $9.8 billion in 2024 sales, it’s the same ranking Beacon had in our 2024 list, trailing only SRS Distribution, Builders FirstSource and ABC Supply.