William Blair downgraded Trex Company (TREX) to Market Perform from Outperform without a price target following the Q3 report. The company issued a “sizable cut” to Q4 estimates and a 23% cut to 2026 EBITDA numbers based on lower gross margins and higher spending, the analyst tells investors in a research note. The firm cites the significant reduction to 2026 estimates and “big change” to competitive dynamics in the industry for the downgrade. Blair sees a “lackluster outlook” for consumer spending and “marketing war” in Trex’s industry.
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