Trex Company price target raised to $66 from $62 at Loop Capital

Loop Capital analyst Jeffrey Stevenson raised the firm’s price target on Trex Company (TREX) to $66 from $62 and keeps a Hold rating on the shares. The firm’s survey indicates that sell through demand trends remain resilient, and there are a number of things to like about Trex right now, including easy second-half comps from last year’s channel de-stocking, expected sequential margin step up in Q3 after cost headwinds mitigate, and near-term share gain opportunities due to industry consolidation, the analyst tells investors in a research note. The stock is also trading at a valuation discount to Azek Co’s (AZEK) acquisition multiple despite Trex’s market leading composite decking positioning, the firm added.