Stifel downgraded Beacon (BECN) to Hold from Buy with a price target of $122.55, down from $131, following the company’s formal rejection of QXO‘s (QXO) $124.25 per share tender offer. The firm says its updated scenario analysis favors QXO successfully acquiring Beacon at $124.25 per share. Though the rejection of QXO’s offer was fully expected, the upside case requiring a strategic acquirer is now “significantly less likely,” the analyst tells investors in a research note. Stifel believes the absence of a formal process against QXO’s public offer “significantly reduces” the probability of a takeover. It views Beacon as fully valued at current levels.
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