UPDATE: Stifel Reiterates On Trex Company On Positive 2015 Outlook

In a report published Friday, Stifel analyst John Baugh reiterated a Buy rating on

, and raised the price target from $41.00 to $46.00. In the report, Stifel noted, “We are adjusting our estimates somewhat higher for Trex for 2015 and increasing our target price. We believe that Trex can continue to take meaningful market share heading into 2015 and that consumer demand should be stronger than what transpired this past year. Early season weather issues in 2014 should also ease comparisons as we enter 2015. We are raising our core decking and railing estimates from 10% growth to 12% growth in 2015. Approximately 3-4% of this growth should come from price increases already taken late this year on the monochromatic Transcend decking line. We think industry growth can be 4-5% in 2015 which should represent slight acceleration from 2014 results. And we believe Trex will continue to grow share as it reaps benefits from competitor struggles in 2014 and distribution gains made in late 2013 that have not fully accrued to this point.” Trex Company closed on Thursday at $42.99.