DA Davidson Upgrades Trex (TREX) to Buy

DA Davidson analyst Kurt Yinger upgraded Trex (NYSE: TREX) from Neutral to Buy with a price target of $50.00 (from $45.00).

The analyst comments "We are upgrading shares of TREX from Neutral to BUY and bumping our PT from $45 to $50 (15x-17x 2026E-2027E EBITDA). In short, we view concerns around pricing, competition, and market share as overly discounted. In our view, Trex is making the necessary moves to better protect their leading position in the composite decking category, which with a supportive trajectory in material conversion can support above-market top-line growth and still enviable margins. Despite the recent run, with the stock trading at 12x-14x forward EBITDA and down 37% on an LTM basis, we see an attractive entry-point."

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 $41.65 yesterday.

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