Azek price target raised to $51 from $49 at BMO Capital

BMO Capital analyst Ketan Mamtora raised the firm’s price target on Azek (AZEK) to $51 from $49 and keeps a Market Perform rating on the shares after its Q4 earnings beat and above-consensus guidance. The company reported a strong finish to FY24 with Q4 sell-through up high-single-digits, and the comments on the call on demand and channel inventories were constructive, the analyst tells investors in a research note. BMO adds that it sees potential upside to Azek’s Q1 and FY25 revenue growth targets, though it is also concerned that competition in railing is intensifying and the recent launch of value-oriented products could impact margins.