12:19 PM EST, 02/04/2025 (MT Newswires) -- Beacon Roofing Supply's ( BECN ) valuation gap with QXO's $124.25-per-share bid suggests that company management could present a detailed plan and outlook at its investor day in March, RBC Capital Markets said in a note Tuesday.

Beacon is expected to detail a plan to reach about $1.3 billion to $1.4 billion in adjusted earnings before interest, taxes, depreciation, and amortization by 2028, the investment firm said.

The forecast assumes an increase in revenue with about 7% compound annual growth rate, increasing revenues from around $9.8 billion in 2024 to roughly $13 billion in 2028, RBC said.

The valuation plan allocates approximately $0.9 billion for acquisitions and $2.2 billion for share buybacks, reducing the share count by 13 million to roughly 50 million by the end of 2028, the analysts noted.

Although these long-term targets rest on optimistic assumptions, they may form the basis of management's argument to highlight the company's potential value compared to the current QXO offer, according to the note.

RBC maintained an outperform rating and $130 price target for Beacon.

Price: 118.80, Change: +1.30, Percent Change: +1.11