DA Davidson lifts Azek stock price target to $51 from $50

Published 07/05/2025, 11:24
DA Davidson lifts Azek stock price target to $51 from $50

On Wednesday, DA Davidson analyst Kurt Yinger increased the price target on Azek Co. (NYSE: AZEK) to $51.00, up from the previous target of $50.00, while keeping a Neutral stock rating. The adjustment followed Azek’s announcement of its fiscal second quarter 2025 sales and EBITDA, which surpassed the high end of the company’s guidance. According to InvestingPro data, analyst targets for AZEK range from $48 to $61, with the stock currently trading at $49.63. The company’s valuation metrics suggest it’s trading at premium multiples, with a P/E ratio of 49.15 and an EV/EBITDA of 20.6.

Azek’s financial results highlighted a slight dip in product sell-through, mainly during January and February, but reported strong sell-in figures. These were bolstered by the introduction of new products, expansion of shelf space, and the addition of new distribution partners. Despite the observed weakening in sell-through, Azek has chosen to maintain its full-year guidance, anticipating a moderation in sell-through that has yet to materialize. InvestingPro analysis reveals the company maintains strong financial health with a ’GOOD’ overall rating, supported by healthy liquidity ratios and moderate debt levels. The platform offers 12 additional exclusive ProTips and comprehensive analysis in its Pro Research Report.

Yinger’s commentary included observations on the company’s forecasts, which were detailed in the recently filed F-4 registration statement. These projections suggest that Azek has stronger internal expectations for fiscal year 2025 and anticipates performance significantly above the consensus for fiscal year 2026.

The maintained Neutral rating reflects the analyst’s position on the stock following the latest financial disclosures and the company’s steady outlook for the future. Azek’s recent financial achievements and strategic moves in product distribution and partnerships have been acknowledged in the revised price target, indicating a positive reception to the company’s current business strategy and market position.

In other recent news, Azek Company Inc. reported its financial results for the second quarter of fiscal year 2025, exceeding expectations. The company achieved an adjusted earnings per share (EPS) of $0.45, surpassing the forecasted $0.43, while its revenue reached $452.2 million, outperforming the projected $445.72 million. This marks an 8% year-over-year increase in consolidated net sales. Azek’s residential segment showed robust growth, with net sales rising by 9% to $437 million. Alongside these financial achievements, Azek proposed a merger with James Hardie (NYSE:JHX), aimed at realizing significant cost and sales synergies. The company also launched several new products and expanded its recycling capabilities. Analysts have noted that Azek’s strong performance highlights its competitive positioning and strategic execution. Despite these positive developments, Azek’s stock experienced a slight decline in aftermarket trading.

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