Analysts Raise Trex Price Target On Solid Q3 Results - Trex Co (NYSE:TREX)

BMO Capital analyst Ketan Mamtora raised the price target on Trex Company Inc TREX to $105 from $98 and maintained a Market Perform rating on the shares after its Q3 earnings beat.
Mamtora mentions the company benefits from "strong" composite decking demand while its market share gains from wood accelerate to 200bps.
Mamtora further cites Trex's strong balance sheet that provides the company with financial flexibility and notes its 31-times expected forward EBITDA multiple that warrants a neutral stance.
Barclays analyst Matthew Bouley raised the price target to $116 from $114, implying an 11% downside, and maintained an Equal-Weight rating on the shares.
Stephens & Co. analyst Trey Grooms raised the price target to $134 from $120, suggesting a 2% upside and an Overweight rating on the shares.
B. Riley analyst Alex Rygiel raised the price target to $121 from $108 and maintained a Neutral rating on the shares following the "solid" Q3 results. The analyst keeps a Neutral rating due to valuation.
DA Davidson analyst Kurt Yinger raised the price target to $120 from $100 but kept a Neutral rating on the shares.
Yinger says the company's Q3 results and Q4 guidance look encouraging amid continued robust Residential demand, early progress on restoring gross margins, and solid execution despite the supply chain challenges.
Yinger adds, however, that a neutral stance is warranted given the stock's "rich" valuation.
Baird analyst Timothy Wojs raised the price target to $120 from $108 and maintained a Neutral rating on the shares.
The analyst said his thesis exiting the quarter remains unchanged. He believes the company remains well-positioned longer-term to capitalize on secular trends, but with channel inventories beginning to normalize, he believes the risk/reward at current levels is balanced.
Recently, Trex reported Q3 results, with a consolidated net sales increase of 45% year-over-year to $336 million, beating the consensus of $325.63 million. EPS of $0.64 topped the consensus of $0.58.
For Q4, the company expects sales of $295 million - $305 million, above the consensus of $276.3 million.
Price Action: TREX shares are trading higher by 13.3% at $131.15 on the last check Tuesday.

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