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.

While we acknowledge the potential of QXO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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