0824 ET - Trex's railing initiative can help its growth profile down the line, but a better repair and remodel landscape next year remains the main driver of potential upside, says Truist's Keith Hughes in a research note. The maker of composite decking has expanded its railing offering in an attempt to increase attachment rates with its core decking product; the analyst believes the attachment rate has been very low for many years. Hughes notes that most distributors have agreed to Trex's mandate that they carry the entire railing line. "We believe this will take time but see potential for at least a LSD add to growth in 2025," the analyst says. (denny.jacob@wsj.com; @pennedbyden)
(END) Dow Jones Newswires
December 16, 2024 08:24 ET (13:24 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.