Trex Company upgraded to Buy from Hold at Jefferies

Jefferies upgraded Trex Company (TREX) to Buy from Hold with a price target of $42, up from $39. The firm says that with the residential market expected to remain soft to start 2026, it prefers consumer-facing companies that have pricing power and are trading at discounted multiples. Trex shares are trading at a discount to its historical multiple, and the recent pullback has created an attractive entry point in a secular growth name, the analyst tells investors in a research note. Jefferies adds that while the company has seen increased competition, its step-up in programming spend has resonated with the channel and should allow Trex to take share from tertiary brands.