Benchmark maintains Trex stock Buy rating, $80 target

Published 12/05/2025, 15:36
Benchmark maintains Trex stock Buy rating, $80 target

On Monday, Benchmark analysts maintained their Buy rating on Trex Company (NYSE:TREX) shares with a price target of $80.00, positioning it within the broader analyst range of $54-$85. In a recent evaluation, the analysts highlighted Trex’s performance in the first quarter of 2025, noting that the company’s revenue, EBITDA, and EPS exceeded Wall Street’s expectations. The company maintains a healthy gross profit margin of 40.6% and trades at a P/E ratio of 33.7x. Despite the impact of severe weather at the beginning of the quarter, Trex closed strongly due to sustained demand for its premium products, increased shelf presence in big box retailers, and strategic positioning in the professional channel. According to InvestingPro data, the company operates with a moderate debt-to-equity ratio of 0.53, providing financial flexibility to support its growth initiatives. InvestingPro offers 10+ additional exclusive insights about Trex’s financial health and market position.

The company’s solid first-quarter results were attributed to the growing popularity of outdoor living spaces, which have consistently outperformed the broader remodeling and renovation (R&R) market in recent years. Trex’s internal and external metrics suggest a positive outlook, with early indicators for the second quarter of 2025 showing contractors reporting backlogs ranging from six to eight weeks.

This continued momentum into the second quarter aligns with the broader trend observed in the outdoor living sector. Trex’s ability to navigate early quarter challenges and finish with strong performance has reinforced the confidence of Benchmark analysts in the company’s market position and growth potential, though InvestingPro data indicates the stock’s price movements remain quite volatile with a beta of 1.63.

Trex’s commitment to capturing market share through its premium product offerings and strategic channels has been a key factor in its success. The company’s performance and the analysts’ reiterated Buy rating and price target reflect a stable and optimistic forecast for Trex’s future earnings.

In summary, Benchmark’s analysis suggests that Trex Company remains well-positioned within the market, with favorable conditions expected to persist. The firm’s unchanged earnings per share (EPS) estimates for fiscal years 2025 and 2026 further support the Buy rating and $80 price target for Trex shares.

In other recent news, Trex Company Inc. reported its first-quarter 2025 earnings, revealing revenue of $340 million, which exceeded forecasts by approximately $10.88 million, despite a 9% year-over-year decline. The company’s earnings per share (EPS) met expectations at $0.60. Trex’s gross profit was $138 million, with a margin of 40.5%, and adjusted EBITDA was $101 million, marking a 24% decline year-over-year. The company maintains a positive outlook for 2025, projecting full-year net sales growth of 5-7% and an adjusted EBITDA margin expected to exceed 31%. Meanwhile, Stephens analyst Trey Grooms adjusted Trex’s stock price target to $65 from $73, maintaining an Equal Weight rating. The revision followed Trex’s first-quarter sales performance, which surpassed guidance due to a surge in March sales, although gross margins fell short of expectations. Despite the challenges, the company anticipates stronger performance in the second half of 2025, driven by new product launches and operational improvements.

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