Stifel Downgrades Trex Company (TREX) Stock

Core Viewpoint - Trex Company, Inc. has been downgraded by Stifel from "Buy" to "Hold" with a reduced price target of $35, indicating a reset in expectations due to known headwinds [1][2]. Financial Performance - In Q3 2025, Trex reported net sales of $285 million, a 22.1% increase from $234 million in the same quarter last year, primarily driven by volume growth [3]. - EBITDA for Q3 2025 rose by 27.2% to $86 million from $68 million, with an EBITDA margin expansion of 120 basis points to 30.3% from 29.1% year-over-year [3]. Future Outlook - For Q4 2025, Trex expects sales to be between $140 million and $150 million, leading to a full-year sales guidance of $1.15 billion to $1.16 billion [4]. - The company aims to capture a larger share of the market transitioning from wood to composite decking [4].