QXO’s stock experienced a notable increase on Thursday following the latest show of confidence from a major investment firm. Baird initiated its coverage of the company with an “Outperform” rating and set a price target of $32 per share, suggesting a potential upside of more than 60% from QXO’s previous closing price of $19.95.
Baird analysts emphasized the strength of QXO’s executive leadership, particularly its CEO, Brad Jacobs. They believe that Jacobs and his team are once again deploying a strategic formula that has yielded significant success in the past. According to their assessment, QXO is well-positioned to create substantial long-term shareholder value by following a proven business model—one that integrates organic growth with disciplined acquisitions.
This bullish outlook follows two other recent analyst endorsements. Just a week earlier, Wolfe Research also began coverage of QXO with an “Outperform” rating, but with an even more optimistic $44 price target. Wolfe praised the company’s focus on expanding its market presence through a combination of internal growth and mergers and acquisitions (M&A). Their outlook is based on expectations that QXO will continue to deliver strong earnings before interest, taxes, depreciation, and amortization (EBITDA) growth, supported by its scalable business structure.
Meanwhile, Oppenheimer, which also initiated coverage recently, set a $27 price target, highlighting QXO’s acquisition of Beacon Building Products as a key strategic milestone. According to Oppenheimer, this acquisition forms the initial platform for QXO’s ambitious goal of reaching $50 billion in annual revenue within the building products distribution sector.
The Beacon deal, valued at $11 billion, was finalized in late April and is widely considered a transformative move. It provides QXO with a solid foothold in a highly fragmented industry, offering room for consolidation and significant growth potential. Analysts agree that this deal not only brings scale but also positions QXO to expand rapidly into related markets.
Since the period leading up to the Beacon acquisition in mid-March, QXO’s stock has rallied significantly—posting gains of over 55%. This performance reflects growing investor optimism about the company’s future, its leadership’s track record, and its capacity to execute a long-term vision built on both organic momentum and strategic expansion.
With multiple major firms now backing QXO with “Outperform” ratings and targets well above the current share price, market sentiment is clearly shifting in favor of the company’s long-term prospects. Many investors are beginning to view QXO not just as a short-term trade but as a powerful long-term growth story in the industrial and building products distribution space.
