RBC on Azek Co. (AZEK): 'Solid FY'25 setup with upside potential'; PT raised to $58

RBC Capital analyst Mike Dahl raised the price target on Azek Co. (NYSE: AZEK) to $58.00 (from $50.00) while maintaining a Outperform rating.

The analyst said: "Solid FY’25 setup with upside potential: Mgmt. is pleased with CY'24's sell-through resilience, the recent reacceleration, and current leads/ backlog/sample orders. Mgmt. framed its initial expectations for +MSD sell-through in a ~flat R&R market as reflecting a balanced backdrop given macro puts/takes with continued outperformance driven by share wins and new product launches (each ~+2-3%). Guide assumes relatively neutral pricing, as +LSD% decking pricing is offset by promotional programs in exteriors. Our sense is the funnel for both share gain opportunities and new product contributions (rails, pvc siding, painted trim, etc.) presents opportunity for add’l outgrowth potential as the year progresses, while mgmt. believes R&R could ultimately be better as well but noted its consistent approach erring conservative with guidance prior to seeing the early buy and key selling season trends."

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