William Blair analyst Ryan Merkel has maintained their bullish stance on TREX stock, giving a Buy rating yesterday.
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Ryan Merkel has given his Buy rating due to a combination of factors including steady consumer demand and expected earnings per share (EPS) for Trex Company aligning with market expectations. The company’s reaffirmation of its second-quarter and full-year guidance, despite the resignation of its CFO, indicates stability and confidence in its operations.
Furthermore, Merkel anticipates that Trex will outperform the flat repair and remodel market in 2025, driven by factors such as wood conversion, new product offerings, and the introduction of new railing products. The upcoming Arkansas factory is expected to contribute to long-term growth, supporting a mid-teens EPS growth thesis. A potential decrease in interest rates and an increase in consumer confidence could further enhance Trex’s valuation, making it a compelling buy.
In another report released yesterday, Robert W. Baird also upgraded the stock to a Buy with a $75.00 price target.