William Blair analyst Ryan Merkel has maintained their bullish stance on TREX stock, giving a Buy rating on October 9.
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Ryan Merkel has given his Buy rating due to a combination of factors that suggest a positive long-term outlook for Trex Company despite some near-term challenges. The company’s increased marketing efforts in response to competition from AZEK/James Hardie indicate a proactive approach to maintaining its market position. Although there is a cautious sentiment regarding the short-term performance with potential sales and margin pressures, the long-term prospects remain promising.
Merkel’s confidence in Trex is bolstered by the company’s potential for growth through wood conversion and railing share gains. Additionally, Trex is recognized for having industry-leading margins and returns, which further supports the Buy rating. These factors collectively suggest that while the immediate future may present some hurdles, Trex is well-positioned for sustained success in the decking industry.
In another report released on October 9, Stifel Nicolaus also initiated coverage with a Buy rating on the stock with a $61.00 price target.