Raymond James Initiates QXO, Inc. (QXO) With a Buy

QXO, Inc. (NYSE:QXO) is one of the Best Stocks to Buy for the Next 3 Months According to Hedge Funds. On September 5, Sam Darkatsh from Raymond James initiated coverage of QXO, Inc. (NYSE:QXO) with a Buy rating and a $28 price target.

The analyst sees QXO as a good investment opportunity and describes the setup for the company as asymmetrically favorable. He also highlighted the company’s acquisition of Beacon Roofing Supply for around $11 billion to be a major milestone. Darkatsh believes that this acquisition gives QXO a strong platform in building product distribution and supports the company’s goal to reach $50 billion in revenue. However, the analyst warned about some possible execution risks that could potentially challenge and delay the company’s plan.

QXO, Inc. (NYSE:QXO) distributes roofing, waterproofing, and building products in the US. It uses technology to help contractors and suppliers manage inventory, orders, and customer service.

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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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