UPDATE: Stifel Nicolaus Raises PT to $36 on Trex Company
Stifel Nicolaus increases its price target from $31 to $36 on Buy-rated Trex Company (NYSE: TREX) on strength indicated by channel checks.
Stifel Nicolaus notes, "We are raising our 2012 and 2013 revenues and EPS estimates on Trex to reflect: 1) An improved economic outlook, 2) Terrific weather over the past 3-4 months and decent long range weather forecasts, and 3) Positive channel checks with distributors and lumber yards. Our 1Q revenue estimate increases to $92.5 million, now up 37% from the prior year, and our EPS estimate increases from $0.50 per share to $0.55 per share. Our 2012 EPS estimate increases from $1.23 to $1.50 and our 2013 EPS estimate increases to $2.50 per share from $2.00 (both the “old” and revised 2013 estimates assume a 15% tax rate)."
TREX closed at $31.34 yesterday.
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