Beacon ‘not the most obvious asset we see QXO acquiring,’ says Jefferies

After The Wall Street Journal reported yesterday that QXO (QXO), which is “effectively a SPAC,” has made an offer to acquire Beacon (BECN), Jefferies analyst Philip Ng noted that QXO has dry powder to pursue a deal in the $6B-$8B enterprise value range, so Beacon would be “on the upper end of the range of the size of deal it could pursue.” The firm, which noted that Beacon had an EV of $9.8B following the stock move yesterday, said the company could provide the foundation for QXO to consolidate the building products distribution industry, but added that Beacon is “not the most obvious asset we see QXO acquiring.” Jefferies keeps a Hold rating and $100 price target on Beacon shares.