Trex Company reported ‘healthy’ Q2 beat, says Loop Capital

Loop Capital keeps a Hold rating and $66 price target on Trex after its Q2 results. The company reported a “healthy” Q2 beat as it has benefited from strong new products demand and its new exclusive distribution partnerships, but the firm’s Q3 estimates moved lower since Trex expects 100bp of sequential gross margin expansion – modestly below expectations as railing conversion costs and modifications to its low-end enhance product line are now complete, the analyst tells investors in a research note.