Trex Company price target lowered to $100 from $120 at Truist

Truist analyst Keith Hughes lowered the firm’s price target on Trex Company to $100 from $120 but keeps a Buy rating on the shares. The company’s results were modestly weak, but slowing sell-through in the quarter – particularly June and July and specifically at the low end – appears to have driven a significant sales shortfall expectations for the second half on destocking, the analyst tells investors in a research note. Despite the weak sales and production volume however, Trex margins are holding up very well, with EBITDA margins guided to grow, the firm added.