There are 6 different analyst targets contributing to that average for Trex Co Inc, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $43.00. And then on the other side of the spectrum one analyst has a target as high as $55.00. The standard deviation is $4.135.
But the whole reason to look at the average TREX price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with TREX crossing above that average target price of $48.50/share, investors in TREX have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $48.50 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover Trex Co Inc:
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