Analyst Reuben Garner of Benchmark Co. maintained a Buy rating on AZEK Company (AZEK – Research Report), with a price target of $57.00.
Reuben Garner has given his Buy rating due to a combination of factors surrounding the acquisition of AZEK by James Hardie. The transaction offers AZEK shareholders a significant premium, with a total per share value that is notably higher than its recent average trading price. This premium reflects the strategic value and growth potential that James Hardie sees in AZEK.
Additionally, the merger is expected to create a stronger combined entity with an expanded market presence in North America. The anticipated cost and commercial synergies are projected to significantly enhance adjusted EBITDA, offering substantial financial benefits. Furthermore, James Hardie’s plans for share repurchases post-acquisition signal confidence in the future performance of the combined company, making AZEK an attractive investment opportunity.
Garner covers the Industrials sector, focusing on stocks such as Quanex, Beacon Roofing Supply, and Bluelinx Holdings. According to TipRanks, Garner has an average return of 13.6% and a 53.29% success rate on recommended stocks.