Trex (TREX): Industry Checks Affirm Sales Upside - Wedbush

Wedbush analyst, Al Kaschalk, reiterated his Outperform on Trex (NYSE: TREX) as channel checks imply 2Q industry sales growth of 8.3%, 130bps above the analyst's 2Q:CY16 estimate for TREX. The difference is largely driven by composite decking volume demand of 7.8%, offset by price of 0.5%. Underlying factors continuing to drive spending (demand) on decking/railing products include improved home values and low mortgage rates. Respondents spoke to minimal pricing (~0.5%) which is generally in-line with <1.0% expectations and guidance.

No change to the price target of $50.

For an analyst ratings summary and ratings history on Trex click here. For more ratings news on Trex click here.

Shares of Trex closed at $45.52 yesterday.

You May Also Be Interested In

• Cleveland Research Upgrades Dynatrace Inc. (DT) to Buy, 'optimism underlying fundamentals are likely to support upside'
• Boston Beer Company (SAM) PT Lowered to $310 at Evercore ISI
• Goldman Sachs First Take on Netflix (NFLX): 'We expect the market to have a muted reaction'