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Research Alert: CFRA Maintains Hold View On Trex Company, Inc.

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We keep our 12-month target price of $50. This is based on our forward P/E of 28x our 2027 EPS view of $1.80. We raise out 2026 EPS estimate to $1.66 from $1.60 (2027 EPS unchanged). Trex delivered resilient Q1 2026 results with net sales up 1% Y/Y to $343M and gross margin holding at 40.5%. Net income rose to $61M ($0.58/share) while adjusted EBITDA improved 2% to $103M, demonstrating strong cash generation amid residential market headwinds. Free cash flow improved 39% to negative $143M as the Arkansas facility nears completion and capex declined. Management reaffirmed 2026 guidance of $1.19B-$1.23B revenue and $315M-$340M adjusted EBITDA despite a down-to-flat R&R market, while reducing capex guidance to $100M-$120M from $224M in 2025.

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