Trex Company price target lowered to $65 from $73 at Stephens

Stephens analyst Trey Grooms lowered the firm’s price target on Trex Company (TREX) to $65 from $73 and keeps an Equal Weight rating on the shares. Q1 sales were above guidance and estimates, but gross margin missed estimates due to lower volume and temporary cost increases, specially product enhancement and railing manufacturing transition costs, which are expected to remain into Q2, the analyst tells investors. While the outlook for second half margin improvement and free cash flow generation into next year is “encouraging,” the heightened level of uncertainty around consumer confidence and resulting demand keeps the firm on the sidelines, the analyst added.