Trex Company price target lowered to $40 from $80 at Benchmark

Benchmark analyst Reuben Garner lowered the firm’s price target on Trex Company (TREX) to $40 from $80 and keeps a Buy rating on the shares after the company reported lighter than anticipated Q3 results and management revised FY25 guidance lower to reflect the broad-based demand slowdown it experienced during the quarter and expectations for channel destocking heading into year end. The firm thinks the market is “likely to jump to conclusions” that investments and margin degradation is needed to stem share losses and the stock could struggle to get the multiple it has historically received until there is more concrete evidence that isn’t the case, the analyst tells investors.