Trex Company (TREX, Financial) has faced a significant adjustment from Citi, which has reduced its price target for the company from $78 to $60. The decision to maintain a Neutral rating on Trex shares reflects growing concerns over weaker demand.
The shift comes as Citi analysts adjusted their fiscal 2025 EBITDA estimates, acknowledging the impact of reduced consumer confidence and macroeconomic uncertainties. As composite decking is a major component in discretionary home repair and remodeling projects, any decline in consumer sentiment could significantly affect sales volumes.
Given the macroeconomic environment, Trex faces headwinds that could challenge its market performance in the coming years. As such, investors are advised to remain cautious, considering these potential impacts on the company's financial outlook.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for Trex Co Inc (TREX, Financial) is $73.13 with a high estimate of $90.00 and a low estimate of $54.00. The average target implies an upside of 33.10% from the current price of $54.94. More detailed estimate data can be found on the Trex Co Inc (TREX) Forecast page.
Based on the consensus recommendation from 19 brokerage firms, Trex Co Inc's (TREX, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Trex Co Inc (TREX, Financial) in one year is $73.75, suggesting a upside of 34.24% from the current price of $54.94. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Trex Co Inc (TREX) Summary page.
