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Fly News Breaks for January 14, 2020
Jan 14, 2020 | 09:20 EDT
William Blair analyst Ryan Merkel says that Home Depot (HD), according to his contacts, has elected to stay with Fiberon's Veranda as its stocked low-end decking line. The analyst thinks the primary reason is Home Depot's caution around Trex Company (TREX) having enough immediate capacity to fill demand. For Trex shares, the news should not be a major surprise, Merkel tells investors in a research note. Trex is just now catching up on its backlog from 2019, and demand "remains robust" entering 2020, adds the analyst. Further, he believes Basics at Home Depot was an "optionality and not the only source of upside versus Street estimates." And Merkel still believes Basics is an opportunity at Home Depot in the future. For Trex's 2020, the major investor focus is supply, not demand, says the analyst. He believes the company's ability to smoothly ramp production will dictate sales. Merkel still thinks Trex can generate 20% sales growth in 2020 and mid-teens growth in 2021. The analyst keeps an Outperform rating on the shares.
News For TREX;HD From the Last 2 Days
May 20, 2022 | 09:33 EDT
Institutional investors and professional traders rely on The Fly to learn which companies the best analysts on Wall Street are saying to buy and sell. Research analysts at... To see the rest of the story go to See Story Here
May 20, 2022 | 06:21 EDT
Citi analyst Steven Zaccone raised the firm's price target on Home Depot to $348 from $327 and keeps a Buy rating on the shares. The analyst increased fiscal 2022 earnings estimates post this week's results.