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A flurry of dealmaking could be a catalyst for QXO , according to RBC Capital Markets. The firm initiated coverage of the building products stock with an outperform rating and a $33 per share price target. RBC’s forecast implies about 53% upside from Friday’s close. Analyst Mike Dahl said QXO could pursue an array of potential deals, with some being on the larger side. QXO YTD mountain QXO stock in 2025. “We think the M & A pipeline includes a handful of potential large deals ($5 BN+) and many smaller to mid-sized targets. We est. QXO can deploy ~$3 BN/yr over the next 5 years on M & A (translating to ~$15 BN in cumulative revs and ~$1.5 BN in Adj. EBITDA at purchase) without issuing [additional] equity,” the analyst said. “QXO is unique not just in its ambition to significantly consolidate (and innovate) building products distribution, but that its mandate to do so leaves it unbound and unconstrained by conventional norms faced by competitors,” Dahl added. The analyst also noted that the overall building products segment “offers ample opportunity for consolidation” given its fragmentation. Dahl also pointed QXO’s potential margin expansion catalysts, which he said includes artificial intelligence. “QXO plans to disrupt building products distribution, a historically technology lagging sector, with AI, machine learning tools, and other general technological enhancements (i.e., centralized CRMs, modern inventory mgmt. software, increased automation within warehouses) to simplify and optimize pricing, procurement, working capital, logistics, and organizational structure to further strengthen operating margins,” the analyst said. Shares advanced 2% in the premarket following RBC’s call. Year to date, they have advanced more than 36% in 2025.
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