09:05 AM EDT, 05/10/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month price target by $7 to $94 on a forward P/E of 35x our 2025 EPS estimate, in line with the five-year average. We lift our 2024 EPS estimate by $0.13 to $2.35 and 2025's by $0.12 to $2.68. Q1 sales increased 57% Y/Y on the channel recalibrating inventories to prepare for seasonal demand, increased consumer demand, and a shift of TREX's Early Buy season from Q4 2023 that added $75 million in sales. Operating margin increased 8% Y/Y on increased capacity utilization and production efficiencies, as well as continued implementation of TREX's cost improvement initiatives; partially offset by higher SG&A. TREX posted Q1 EPS of $0.82, beating consensus by $0.10. We think TREX is well-positioned to benefit from the ongoing conversion from wood to composites over the next few years, and view its ability to extend its portfolio with new products favorably for growth, such as its new Trex-branded deck fasteners that are engineered to make installation easier and more efficient.