Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - DA Davidson reduced its price target on Trex (NYSE:TREX) to $60.00 from $65.00 on Thursday, while maintaining a Neutral rating on the composite decking manufacturer. The stock currently trades at a P/E ratio of 30.76 and has declined 22.4% year-to-date, though InvestingPro analysis suggests the stock may be slightly undervalued at current levels.
The price target adjustment follows DA Davidson’s third-quarter 2025 decking contractor survey, which prompted the firm to make minor downward revisions to its forecasts for the company.
DA Davidson noted a modest softening in reported growth for the quarter, though it observed slight improvement in other leading indicators for the decking industry.
The firm acknowledged the more than 20% retreat in Trex stock since late July but remains cautious due to a "consistent downward trend in core decking project growth" revealed in its surveys.
DA Davidson also cited ongoing "competitive concerns" as creating an overhang for Trex, contributing to its decision to maintain a Neutral stance despite the significant recent share price decline.
In other recent news, Trex Company announced the appointment of Prithvi Gandhi as its new Chief Financial Officer, effective October 6, 2025. Gandhi brings a wealth of financial leadership experience, having served as CFO at Beacon Roofing Supply and TAMKO Building Products. In earnings-related developments, DA Davidson raised its price target for Trex to $65 from $60, citing confidence in the company’s ability to meet full-year sales growth targets and noting expanding gross margins. Additionally, Stifel initiated coverage on Trex with a Buy rating and a $61 price target, highlighting the company’s strong revenue growth prospects and market position.
Truist Securities reiterated its Buy rating on Trex, maintaining a $75 price target despite market concerns about potential price discounting and higher SG&A spending. The firm noted that Trex’s shares have underperformed compared to the S&P 500, although analysts maintain growth estimates for the company. These developments come amidst recent fluctuations in Trex’s stock performance, with analysts expressing varying degrees of confidence in the company’s financial outlook.
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