Trex Company price target raised to $87 from $80 at DA Davidson

DA Davidson analyst Kurt Yinger raised the firm’s price target on Trex Company to $87 from $80 but keeps a Neutral rating on the shares. The analyst cites the company’s Q1 sales outlook that was considerably above consensus, also noting however that Trex’s channel inventories entered the year at historically low levels, with the expectation of that building back up to appropriate levels ahead of Spring. An outlook that calls for second-half sales to be lower on a y/y basis despite a mid-single-digit sell-through growth assumption could prove conservative, but this will likely be determined by inventory positioning at that time, the firm added.