Azek just downgraded at Deutsche Bank, here’s why

Deutsche Bank downgraded Azek to Hold from Buy with a price target of $37, down from $38. The analyst worries that the company would rather maintain acquisition optionality than programmatically invest into its own shares, when there is a stated belief by management that the shares are undervalued. The firm also has less visibility into the profitability of decking given corporate costs will blend into the EBITDA margins for residential going forward.