Trex Company (TREX, Financial) has received an upgrade from BMO Capital analyst Ketan Mamtora, who moved the stock from a Market Perform to an Outperform rating. Despite keeping the price target steady at $72, Mamtora's analysis suggests that the recent dip in TREX's share price presents an enticing buying opportunity for investors.
Trex holds a dominant position in the composite decking sector and is poised to benefit from a long-term shift from wood to composite materials. The company's financial health is described as "pristine," with a solid balance sheet that supports its strategic goals. As Trex approaches the end of its substantial capital expenditure program, BMO sees potential for the company to initiate share repurchases.
The current stock valuation, according to BMO, enhances its appeal to investors, offering a strong case for the upgraded 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 $70.71 with a high estimate of $90.00 and a low estimate of $54.00. The average target implies an upside of 32.37% from the current price of $53.42. 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 $73.26, suggesting a upside of 37.14% from the current price of $53.42. 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.
