UPDATE: Baird Downgrades Trex (TREX) to Neutral on Slower Sell-Through, Supply Constraints

October 12, 2021 3:55 AM EDT
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Price: $94.72 -1.08%

Rating Summary:
    6 Buy, 19 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 18 | New: 32
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(Updated - October 12, 2021 6:31 AM EDT)

Baird analyst Timothy Wojs downgraded Trex (NYSE: TREX) from Outperform to Neutral with a price target of $108.00 (from $116.00) as checks suggest sell-through demand slower in Q3/Q4E.

The analyst commented, "Anecdotal commentary suggests a combination of material/labor constraints, tougher compares, inflation, and seasonality are all playing parts. We remain bullish on long-term industry secular drivers (material conversion, outdoor living wallet share gains) and expect sell-in to exceed sell-through in H2, as channel inventories are replenished; however, slower end-use sales could create a sentiment overhang, limiting near-term stock upside. Our long-term thesis remains intact, but tactically downgrading TREX to Neutral, reflecting YTD outperformance, relative valuation."

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 $103.04 yesterday.

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