Morgan Stanley Initiates Coverage on QXO (QXO) With Buy Rating and $35 Target

QXO Inc. (NYSE:QXO) is one of the best high-beta stocks to buy now. On September 2, Morgan Stanley analyst Christopher Snyder initiated coverage on QXO Inc. (NYSE:QXO) with a Buy rating and a $35 price target. The analyst highlighted QXO’s positioning in a fragmented industry that offers substantial room for consolidation and long-term growth.

Snyder pointed to the company’s plan to scale toward more than $50 billion in revenue, backed by a management team with a proven track record under Brad Jacobs, whose prior ventures in the industrial sector created significant shareholder value.

He noted that QXO Inc.’s (NYSE:QXO) model relies on acquiring and improving businesses through technology adoption and operational best practices, thereby creating a value creation cycle that is less dependent on macroeconomic conditions.

With equity value expected to expand meaningfully and EBITDA projected to compound at a high rate through the decade, Snyder argued that QXO Inc. (NYSE:QXO) offers an attractive return profile. On valuation, he argued that the stock is trading at a discount to its peers, despite its structural advantages, and thus presents a compelling entry point at this stage of its growth story.

QXO Inc. (NYSE:QXO) is a distributor of roofing, waterproofing, and complementary building products in the United States.

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Disclosure: None. This article is originally published at Insider Monkey.