Trex Stock Slips After Downgrade From Baird

Baird analyst Timothy Wojs downgraded Trex Company Inc TREX to Neutral from Outperform and lowered the price target to $108 (implying an upside of 14.7%) from $116.
Decking channel checks suggest sell-through demand will be slower in Q3 and Q4, driven by a combination of material and labor constraints, tougher compares, inflation and seasonality, Wojs notes.
The analyst remains bullish on "long-term industry secular drivers" and expects sell-in to exceed sell-through in the second half of the year as channel inventories are replenished. However, he says that slower end-use sales could create a "sentiment overhang, limiting near-term stock upside."
Price Action: TREX shares are trading lower by 8.50% at $94.28 on the last check Tuesday.

Momentum23.21

Growth41.37

Quality50.43

Value47.22

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