e.l.f. Beauty stock plummets 20% as revenue and guidance fall short of expectations
Investing.com - BofA Securities downgraded Trex (NYSE:TREX) from Buy to Underperform on Wednesday, while significantly reducing its price target to $36.00 from $67.00 following the company’s third-quarter earnings report. The stock currently trades at $47.04, just above its 52-week low of $46.31, having lost nearly 32% year-to-date.
The downgrade comes after Trex delivered disappointing third-quarter 2025 results and provided concerning guidance for the remainder of 2025, along with negative margin commentary for 2026.
BofA Securities cited potential heightened competitive pressure from Azek, ongoing weakness in the repair and remodel market, and Trex’s premium valuation compared to peers as key factors behind the rating change.
The financial services firm lowered its 2025 earnings per share estimates by 13% to $1.87 and reduced its 2026 EPS forecast by 30% to $1.74.
Trex, a major manufacturer of wood-alternative decking products, has faced increasing challenges in maintaining its market position amid a difficult macroeconomic environment for home improvement products.
In other recent news, Trex Company Inc. reported its third-quarter 2025 earnings, which showed a decline in both earnings per share (EPS) and revenue compared to forecasts. The EPS was reported at $0.51, missing the anticipated $0.57, while revenue reached $285 million, falling short of the expected $301.55 million. These results represent a 10.53% negative surprise in EPS and a 5.49% shortfall in revenue. Following the earnings report, Deutsche Bank downgraded Trex from Buy to Hold and reduced its price target from $92.00 to $40.00, citing weakening demand trends and margin pressure. Similarly, William Blair downgraded Trex from Outperform to Market Perform due to significant reductions in future estimates and changing competitive dynamics. The firm noted a 28% drop in fourth-quarter estimates and a 23% reduction in 2026 EBITDA projections, attributed to lower gross margins and higher SG&A expenses. These developments indicate a challenging period for Trex as it navigates a shifting market landscape.
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