Azek downgraded to Neutral from Buy at DA Davidson

DA Davidson analyst Kurt Yinger downgraded Azek to Neutral from Buy with a price target of $44, down from $57. The firm’s latest decking contractor survey points to a deceleration in activity over Q2 as well as near-term contractor growth expectations that have moved lower. Guidance from the company includes an assumption of decelerating sell-through over the second half of 2024, but the firm sees less likelihood of upside to estimates and believes that the weakening trend will serve as an overhang on sentiment, the analyst tells investors.