Trex Company price target raised to $72 from $70 at BMO Capital

BMO Capital raised the firm’s price target on Trex Company to $72 from $70 and keeps a Market Perform rating on the shares after its Q3 earnings beat and guidance raise. The firm is positive on the multi-year conversion opportunity from wood to composite while also noting that the company’s strong balance sheet provides financial flexibility. BMO adds that Decking sell-through by Trex has held-up better than recent expectations, and the company’s focus on expanding Railing penetration creates further growth runway.