JPMorgan analyst Michael Rehaut raised the firm’s price target on Beacon (BECN) to $136 from $119 and keeps an Overweight rating on the shares. The Wall Street Journal reported that QXO (QXO), a company formed last year by Brad Jacobs designed to acquire building products distribution companies, has made an offer to acquire Beacon, which subsequently closed up 10% on the day, the analyst tells investors in a research note. The firm believes Beacon would represent a “solid foray” for QXO into the building products distribution industry, as it is a leading distributor of residential and non-residential roofing. It continues to expect Beacon to benefit from the execution of its “Ambition 2025” strategic plan, which features both top and bottom line growth initiatives.

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Read More on BECN:

• Baird says Beacon acquisition ‘might make sense’ for QXO

• QXO makes offer to acquire Beacon, WSJ reports

• QXO takeover of Beacon could come before year-end, WSJ says

• Beacon jumps 12% to $110.40 after WSJ says QXO made takeover bid

• QXO makes bid to buy Beacon Roofing, WSJ reports