Azek price target lowered to $16 from $21 at Wedbush

Wedbush analyst Jay McCanless lowered the firm’s price target on Azek to $16 from $21 and keeps a Neutral rating on the shares. The analyst notes the company’s 2023 baseline assumptions are a mid-teens volume decline in new housing and a mid-single-digit to high single-digit decline in R&R demand which should collectively result in a 10% year-over-year volume decline in 2023. The continued destocking in the wholesale channel and lower volumes in 2023 should result in $250M-$265M in 2023 AEBITDA which compares to the Thomson consensus estimate of $298 million prior to the Q4 2022 EPS release, McCanless adds.