Azek downgraded to Neutral from Buy at Citi

Citi analyst Anthony Pettinari downgraded Azek (AZEK) to Neutral from Buy with a price target of $51.50, down from $61, following James Hardie’s (JHX) announced acquisition of the company. The firm expects the deal to close and, given relatively limited upside to its $51.50 target, it downgrades the shares. While Azek shareholders may question the size of the premium, sector conditions are weakening and there is industrial logic of the proposed deal, the analyst tells investors in a research note. Citi also does not see obvious competing bidders.