Trex (TREX) PT Raised to $80 at FBR Capital Following 2Q EPS Beat
FBR Capital raised its price target on Trex (NYSE: TREX) to $80.00 (from $69.00) while maintaining a Market Perform rating following the company's 2Q. TREX reported EPS of $0.97, significantly ahead of the consensus estimate of $0.88. The company also announced the acquisition of privately held SC Company (SCC).
Trex paid $71.5M for SC Company, which is expected to generate $56M in annual revenue in 2017 and is expected to grow at a faster rate than legacy Trex in 2018. Analyst Alex Rygiel raised estimates for Trex for the SCC acquisition and on a legacy basis. For 2017, FBR is looking for net sales of $547M, adjusted EBITDA of $151M, and EPS of $2.92.