Azek downgraded to Neutral at BofA following outperformance

As previously reported, BofA analyst Rafe Jadrosich downgraded Azek to Neutral from Buy with a price target of $25, up from $20. Shares have increased 32% since the company reported fiscal Q3 results on November 28, noted the firm, which notes that FY23 earnings guidance already implies record EBITDA margins in the second half. The firm also expects destocking to continue through calendar Q1 and noted that its channel checks with decking distributors indicate some competitor discounts have been extended into 2023.