In a report released today, Alex Rygiel from B.Riley FBR maintained a Hold rating on Trex Company Inc (TREX), with a price target of $72. The company’s shares closed yesterday at $68.02.
Rygiel observed:
“Last night (7/29), after the close, Trex Company announced 2Q19 results that were somewhat mixed with better-than-expected net sales, and lower gross margins resulting in adj. EPS below our estimate, but in line with consensus. Production throughput challenges and startup expenses for Trex Enhance products negatively impacted 2Q gross margins by 370 bps. Guidance is also mixed with 3Q sales ahead of our and consensus estimates, however commentary about 2H incremental margins of 45% suggests full-year incremental margins significantly below the prior guidance of 40%. Given the improving demand being created by an acceleration in the conversion from wood to composites, TREX will remain focused on improving throughput and adding more capacity, rather than on margin improvements through the rest of 2019.”
According to TipRanks.com, Rygiel is a 4-star analyst with an average return of 6.5% and a 58.8% success rate. Rygiel covers the Basic Materials sector, focusing on stocks such as Granite Construction Inc, Tutor Perini Corp, and Quanta Services.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Trex Company Inc with a $78 average price target.
See today’s analyst top recommended stocks >>
Trex Company Inc’s market cap is currently $3.98B and has a P/E ratio of 31.01. The company has a Price to Book ratio of 10.96.
Based on the recent corporate insider activity of 52 insiders, corporate insider sentiment is negative on the stock.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Trex Co., Inc. engages in the manufacture of wood-alternative decking and railing. Its products include deck framing and drainage, outdoor lighting, furniture, pergola and outdoor kitchens, fencing, collections, and accessory hardware. It operates through the following segments Trex Residential Products and Trex Commercial Products.
