Trex Poised for Growth into 2027, Along With Margin Expansion, BofA Says

11:51 AM EST, 11/05/2026 (MT Newswires) -- Trex Company (TREX) is poised for growth into 2027, along with margin expansion and higher free cash flow, as the company has limited new construction exposure and is not reliant on housing turnover, BofA Securities said in a Thursday research note. The company can continue to grow its market share, BofA said, adding that wood conversion is running above its 80 basis points to 100 basis points historical average, which is supported by marketing and sales investment by Trex and its competitor Azek. Trex has doubled its advertising investment from 2.6% of sales in 2021 to 5.2% in 2025 and estimated 5.5% in 2026, which is paying off in demand across price points, according to a note. BofA expects manufacturing cost per board to fall in 2027 as Little Rock productivity builds in H2 of 2027, with Trex having headroom to raise price given competitor increases. BofA upgraded its rating to buy from underperform and raised its price target to $65 per share from $46. Price: 58.08, Change: +0.93, Percent Change: +1.62