Azek price target raised to $58 from $50 at RBC Capital

RBC Capital raised the firm’s price target on Azek (AZEK) to $58 from $50 and keeps an Outperform rating on the shares after hosting investor meetings with its management team. The firm is incrementally optimistic following the discussions and believes that Azek has a solid FY’25 earnings setup, with its multi-year growth story remaining “firmly on track”, the analyst tells investors in a research note. Azek remains confident in the path to achieving the 27.5% FY27 EBITDA margin target ahead of plan, as ongoing operating initiatives benefits continue, while its growth is driving modest SG&A leverage in spite of strong investments, RBC adds.