Trex Company included in DA Davidson ‘Best of Breed Bison’ list

DA Davidson analyst Kurt Yinger keeps a Neutral rating and $73 price target on Trex Company while naming the stock to the firm’s “Best-of-Breed Bison” initiative, which focuses on long-term best-in-class companies with sustainable competitive moats. The company offers the purest exposure to what is one of the few secular growth trends in building products, the conversion of wood to wood-alternative products in decking applications, and since the product was introduced in the 1990’s, wood-alternative products have slowly but surely been increasing their share of the overall decking market, the analyst tells investors in a research note. The firm adds however that the current valuation on Trex leaves a relatively balanced risk/ reward at present.