Loop Capital positive on sales and margin for Trex Company in 2024

Loop Capital keeps a Buy rating and $110 price target on Trex as part of the firm’s broader research note on Decking. The firm’s latest composite decking survey reported another strong quarter of sell through demand and improved sequential 2024 outlook, with respondents reporting that composite decking sales increased 5%-6% from last year on average at the contractor level in Q1 of 2024, which was slightly ahead of Loop’s Q4 survey showing 4%-5% increase, the analyst tells investors in a research note. Loop adds that it is positive on the company’s sales and margin setup, continued share gains and long-term growth opportunities in adjacent product categories such as railing.