Goldman Sachs, Morgan Stanley, Blackrock and more to report earnings Thursday

Investing.com -- Fresh off its upsized $3 billion capital raise, Brad Jacobs-led QXO Inc (NYSE:QXO) is just weeks to months away from announcing a significant new acquisition, according to people familiar with the matter.

QXO is in late-stage talks with seven potential takeover targets, the people added. The potential deals range from mid-sized businesses with $1 billion to $5 billion in annual revenue to a transformational transaction involving a company with more than $5 billion in revenue, it was relayed. Several of the targets are private, family-owned businesses in both the U.S. and Europe.

One caveat of the recently raised funds is that QXO must complete at least one acquisition by July 15, 2026. That may not prove to be a major hurdle, as people say the company is already prepared to digest a second — and possibly a third — acquisition, following its successful $11 billion purchase of roofing supplier Beacon last year.

The recent financing brings QXO’s dry power to roughly $10 billion, according to Morgan Stanley analyst Christopher Snyder. The equity raise was led by Apollo and Temasek, and also included PGIM, Morgan Stanley Investment Management, Iconiq, AllianceBernstein, Liberty Mutual, ClearBridge Investments, BCI, and AIMCo, the sources said.

While the identities of QXO’s potential targets could not be learned, one name that continues to surface is Builders FirstSource Inc (NYSE:BLDR), although William Blair analyst Ryan Merkel said that the name remains lower on their list given its "size and business model complexity."  Meanwhile, an event-driven analyst who tracks board nomination windows noted that both of QXO’s targets last year, Beacon and GMS, were approached shortly after their nomination windows opened. Builders FirstSource’s nomination window opens on January 27, although its staggered board could limit the effectiveness of a proxy fight. QXO ultimately acquired Beacon after an initial hostile bid, but lost out to Home Depot in the contest for GMS.

Two other public company names that have been mentioned are ADI Global Distribution, which is being spun out of Resideo Technologies Inc (NYSE:REZI), and Core & Main Inc (NYSE:CNM).

Among the private companies being discussed as possible targets are White Cap Construction Supply, US LBM, and 84 Lumber.

Analysts are bullish on the prospects of a new takeover for QXO.

Snyder notes the M&A pipeline is the largest driver for the stock. "...  the now increased dry powder allows for bigger deals which in turn will bring down QXO valuation and more than offset any dilution from the transaction," the analyst stated. "As capital is deployed, QXO valuation steps lower and bigger deals mean more significant compression," he added. Snyder rates the stock an Overweight with a $35 price target.

Investing.com -- Fresh off its upsized $3 billion capital raise, Brad Jacobs-led QXO Inc (NYSE:QXO) is just weeks to months away from announcing a significant new acquisition, according to people familiar with the matter.

QXO is in late-stage talks with seven potential takeover targets, the people added. The potential deals range from mid-sized businesses with $1 billion to $5 billion in annual revenue to a transformational transaction involving a company with more than $5 billion in revenue, it was relayed. Several of the targets are private, family-owned businesses in both the U.S. and Europe.

One caveat of the recently raised funds is that QXO must complete at least one acquisition by July 15, 2026. That may not prove to be a major hurdle, as people say the company is already prepared to digest a second — and possibly a third — acquisition, following its successful $11 billion purchase of roofing supplier Beacon last year.

The recent financing brings QXO’s dry power to roughly $10 billion, according to Morgan Stanley analyst Christopher Snyder. The equity raise was led by Apollo and Temasek, and also included PGIM, Morgan Stanley Investment Management, Iconiq, AllianceBernstein, Liberty Mutual, ClearBridge Investments, BCI, and AIMCo, the sources said.

While the identities of QXO’s potential targets could not be learned, one name that continues to surface is Builders FirstSource Inc (NYSE:BLDR). An event-driven analyst who tracks board nomination windows noted that both of QXO’s targets last year, Beacon and GMS, were approached shortly after their nomination windows opened. Builders FirstSource’s nomination window opens on January 27, although its staggered board could limit the effectiveness of a proxy fight. QXO ultimately acquired Beacon after an initial hostile bid, but lost out to Home Depot in the contest for GMS.

Two other public company names that have been mentioned are ADI Global Distribution, which is being spun out of Resideo Technologies Inc (NYSE:REZI), and Core & Main Inc (NYSE:CNM).

Among the private companies being discussed as possible targets are White Cap Construction Supply, US LBM, and 84 Lumber.

Analysts are bullish on the prospects of a new takeover for QXO.

Snyder notes the M&A pipeline is the largest driver for the stock. "...  the now increased dry powder allows for bigger deals which in turn will bring down QXO valuation and more than offset any dilution from the transaction," the analyst stated. "As capital is deployed, QXO valuation steps lower and bigger deals mean more significant compression," he added. Snyder rates the stock an Overweight with a $35 price target.

Investing.com -- Analysts are divided on Global Payments after the company completed its Worldpay acquisition and exited its issuer services business, with some seeing a clearer strategy and others questioning whether scale alone will drive growth.

Deutsche Bank resumed coverage with a Hold rating and an $80 price target, saying the deal leaves Global Payments as a merchant acquiring pure play with broad exposure across ecommerce, enterprise, SMB and integrated solutions.

The bank said the transactions simplify the operating model and should allow management to focus more sharply, with expense synergies that appear achievable.

DB said Worldpay adds exposure to digital-native merchants and expands Global Payments’ international reach, while bringing stronger card-not-present and PayFac capabilities through Payrix.

The bank said investor confidence will take time to rebuild given both companies’ past execution issues, and questioned whether adding scale is enough in a competitive payments market.

Seaport took a more optimistic view, upgrading the stock to Buy with a $109 price target. The firm said Global Payments is moving beyond what it called a 2025 transition year and is now integrating Worldpay, shifting attention to free cash flow growth, with a target of $5 billion by 2028.

Seaport highlighted the combination of Global Payments, Worldpay and the Genius platform, arguing Genius can drive new revenue, particularly by improving Worldpay’s appeal to small and mid-sized merchants. It said Genius can support merchants from single locations to large multi-site operators, which could help expand the customer base.

The firm acknowledged the risk of upgrading ahead of formal 2026 guidance, warning that conservative guidance could make the stock a show-me story. Still, it expects mid-teens EPS growth this year on about 5% revenue growth and said the shares look inexpensive on its 2026 estimates.