Benchmark Capital Markets has reiterated its Buy recommendation on QXO Inc (NASDAQ:QXO) and held firm on a $50.00 price target after the company reached an agreement to acquire Kodiak Building Partners. At the stock's recent trading level of $25.95, Benchmark's target implies nearly 93% upside, and comes as investors digest both the M&A move and QXO's capital-raising plans.
Kodiak Building Partners is a privately held U.S. distributor focused on lumber and building materials. The company also provides value-added services including assembly, fabrication and installation. QXO announced the acquisition agreement last week; Benchmark expects the transaction to add to earnings, although the firm plans to revise its financial model only after the deal formally closes.
Benchmark analyst Reuben Garner met with Kodiak CEO Brad Jacobs at the Builders' Show this week and held discussions with other public and private participants across the industry in recent weeks. Those meetings informed Benchmark's view that the acquisition will be accretive, while reinforcing the firm's broader thesis about QXO's approach to building scale through distributor platforms.
According to InvestingPro analysis, QXO's overall financial health is rated as "GOOD." While the company reported a loss of $0.51 per share over the trailing twelve months, analysts covered in that analysis project the business will reach profitability this year. Benchmark's outlook is conditioned on completion of the Kodiak transaction and subsequent model updates.
The acquisition is targeted to close in early second quarter 2026. Benchmark also said QXO has up to $6 billion or more of capital available to deploy, a resource the firm views as central to the company's multiple-arbitrage strategy. That strategy, as Benchmark describes it, centers on building a platform across distributor verticals - with roofing and lumber and building materials distributors serving as the company's initial two pillars - to generate value for investors through consolidation.
QXO reported preliminary financial results for the fourth quarter of 2025, with net sales of approximately $2.19 billion and an adjusted EBITDA of roughly $150 million. In parallel, the company announced a public offering of 31.6 million shares at $23.80 each, expected to close in January 2026, with BofA Securities named as the underwriter. That offering is part of a larger plan to raise $750 million in common stock, with an option for underwriters to purchase an additional $112.5 million of shares.
Benchmark's repeated Buy rating and the $50.00 price target reflect the firm's confidence in QXO's equity offering strategy as a means to secure capital for future deals. Separately, Oppenheimer revised its view upward, increasing its price target to $30.00 from $27.00 and maintaining an Outperform rating, citing the company's potential for significant mergers and acquisitions.
Taken together, the acquisition of Kodiak, the preliminary Q4 financials, and the planned equity raise represent coordinated financial and strategic moves by QXO aimed at strengthening its market position and expanding its capital resources. Benchmark will finalize model updates after the Kodiak deal is closed.