Key insights
- QXO's recent acquisition of TopBuild for $17B, following the Kodiak deal, signals aggressive expansion in the building products distribution industry. With an $800B market and a fragmented landscape, QXO aims for $50B in revenue within a decade. The stock currently trades around $17, while analysts have a $32 target. This suggests potential upside if QXO can successfully execute its roll-up strategy, similar to Jacobs' previous ventures with XPO and GXO.
Brad Jacobs just announced a $17B acquisition of TopBuild on top of the $2.25B Kodiak deal he closed last month. Stock is sitting around $17 while analysts have a $32 target. He's done this before with XPO and GXO — took boring logistics and rolled it up into something massive.
The thesis is simple: building products distribution is an $800B industry with no dominant player. He wants $50B in revenue within a decade. Whether you believe him probably comes down to whether you believe in the operator.
Anyone been following this or have a position?