Trex (NYSE:TREX) Raised to Buy at Bank of America

Trex (NYSE:TREX) was upgraded by investment analysts at Bank of America from an “underperform” rating to a “buy” rating in a report issued on Thursday, Marketbeat reports. The brokerage currently has a $65.00 price target on the construction company’s stock, up from their prior price target of $46.00. Bank of America‘s price objective indicates a potential upside of 18.44% from the stock’s current price.

A number of other analysts have also issued reports on the stock. Citigroup restated a “neutral” rating and set a $52.00 target price (up from $43.00) on shares of Trex in a research report on Wednesday, July 15th. DA Davidson reissued a “buy” rating and set a $55.00 price target on shares of Trex in a research note on Tuesday, July 14th. Zacks Research cut Trex from a “strong-buy” rating to a “hold” rating in a report on Monday, September 14th. Stifel Nicolaus set a $55.00 price objective on Trex and gave the company a “buy” rating in a research report on Monday, October 19th. Finally, The Goldman Sachs Group reiterated a “buy” rating and issued a $56.00 target price (up from $49.00) on shares of Trex in a research note on Friday, July 10th. Thirteen research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Trex presently has a consensus rating of “Moderate Buy” and an average price target of $55.18.

Trex Price Performance

TREX traded down $1.13 during midday trading on Thursday, reaching $54.88. 2,434,295 shares of the company’s stock were exchanged, compared to its average volume of 1,677,417. Trex has a 1-year low of $29.77 and a 1-year high of $60.21. The stock has a market capitalization of $5.70 billion, a PE ratio of 31.91, a P/E/G ratio of 2.93 and a beta of 1.46. The business’s 50-day moving average price is $46.31 and its 200 day moving average price is $43.43.

Trex (NYSE:TREX) last issued its quarterly earnings data on Wednesday, November 4th. The construction company reported $0.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.48 by $0.07. The firm had revenue of $359.50 million during the quarter, compared to the consensus estimate of $314.86 million. Trex had a return on equity of 18.03% and a net margin of 14.68%. The company’s quarterly revenue was up 26.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.51 EPS. As a group, analysts expect that Trex will post 1.82 EPS for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. BlackRock Inc. acquired a new position in shares of Trex in the 2nd quarter valued at about $525,081,000. Wellington Management Group LLP grew its stake in Trex by 18.2% during the second quarter. Wellington Management Group LLP now owns 9,877,116 shares of the construction company’s stock worth $494,251,000 after buying an additional 1,518,338 shares during the period. Bank of America Corp DE acquired a new stake in shares of Trex in the second quarter worth $94,851,000. Fort Washington Investment Advisors Inc. OH acquired a new stake in shares of Trex in the third quarter worth $32,858,000. Finally, Freestone Grove Partners LP acquired a new stake in shares of Trex in the second quarter worth $36,197,000. 95.96% of the stock is owned by hedge funds and other institutional investors.

Trex News Summary

Here are the key news stories impacting Trex this week:

• Positive Sentiment: Trex reported Q3 EPS of $0.55, above the $0.48 consensus, and revenue of $359.5 million versus estimates of $314.9 million. Sales rose 26% year over year, and coverage noted the company reached a new one-year high following the results. Trex Shares Rise After Higher 3Q Profit, Sales
• Positive Sentiment: The company raised its 2026 sales outlook to $1.296 billion–$1.306 billion and set a longer-term goal of $2 billion in revenue by 2030. A Q3 analysis highlighted volume-driven growth and a distribution transition as supports for the outlook. Trex targets $2B revenue by 2030 and raises 2026 outlook Q3 deep dive on growth and outlook
• Positive Sentiment: Bank of America upgraded Trex from “underperform” to “buy” and raised its target to $65. Truist also reiterated a “buy” rating and lifted its target to $75, reinforcing the bullish view of the earnings and outlook. Bank of America upgrade coverage Truist price target update
• Neutral Sentiment: Citigroup raised its target from $52 to $59 but kept a “neutral” rating, suggesting some upside while stopping short of a bullish endorsement. Citigroup price target update
• Negative Sentiment: Barclays raised its target from $42 to $46 but maintained an “underweight” rating, indicating it sees the shares as overvalued at recent levels. A separate valuation article also questions whether the post-results gains leave Trex fully valued. Barclays price target update Is Trex fully valued?

About Trex

Trex Company, Inc is a manufacturer of composite decking and outdoor living products. Its offerings are designed as alternatives to traditional wood and include residential and commercial decking, railing systems, outdoor lighting, and related accessories.

The company’s products are marketed under the Trex brand and include decking lines such as Trex Transcend, Trex Select, and Trex Enhance. Trex composite products are made primarily from recycled wood fibers and recycled polyethylene plastics, supporting the company’s focus on low-maintenance and environmentally oriented outdoor building materials.

Founded in 1996 and headquartered in Winchester, Virginia, Trex serves customers through a network of distributors, dealers, retailers, contractors, and building professionals.