Azek price target lowered to $27 from $29 at BMO Capital

BMO Capital analyst Ketan Mamtora lowered the firm’s price target on Azek to $27 from $29 but keeps an Outperform rating on the shares. The company’s FY2023 EBITDA guidance is "prudently conservative" as sell-through demand is down low single digits vs. Azek’s FY23 guidance of a 10% y/y drop in volumes, the analyst tells investors in a research note. Mamtora adds however that if resin costs fall further from current levels, there could be upside to Azek’s cost deflation target.