Melius Research initiates coverage of Trex stock with USD 62 target

Published on 10/07/2026 at 04:26 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Melius Research set a Buy rating on Trex stock on October 6, 2026. Q2 revenue reached USD 418.02 million, up 7.80 percent year over year.

TREX, US89531P1057, Illustration mit AI erstellt.

Trex Company stock (ISIN US89531P1057) became the subject of new analyst coverage on October 6, 2026, when Melius Research initiated coverage with a Buy rating and a USD 62.00 price target, according to MarketBeat. The call arrives as Trex prepares to report its third-quarter 2026 results on November 4, 2026.

New target contrasts with consensus

The Melius target sits above the USD 49.90 average target cited for 23 analysts in the same October 6 report by MarketBeat. That difference gives the new USD 62.00 view a distinct valuation profile, while the broader consensus remains Hold rather than Buy.

For investors, the more important counterweight is earnings quality. Trex generated USD 418.02 million of revenue in the second quarter of 2026, up 7.80 percent from USD 387.80 million in the prior-year quarter, but diluted earnings per share fell to USD 0.60 from USD 0.71, according to TradingView. Net income was USD 61.88 million for the quarter, compared with USD 75.90 million a year earlier.

Revenue growth meets margin pressure

The second-quarter figures show why the analyst debate is not only about sales growth. Revenue exceeded the USD 415.71 million consensus cited in the results coverage, yet earnings per share missed the USD 0.63 estimate by USD 0.03, leaving investors to weigh volume and pricing against profitability.

Trex's operating base remains tied to outdoor living products, composite decking and residential railing. The company reported USD 4.7 billion in market capitalization as of October 6, 2026, while the finance quote showed a 52-week range of USD 29.77 to USD 54.30. The USD 62.00 Melius target therefore sits above the reported yearly high, making the upcoming report a test of whether margin pressure is moderating.

Third-quarter date is set

Business Wire reported that Trex will issue its third-quarter 2026 earnings release on November 4, 2026, at 6:30 a.m. ET, followed by a conference call at 8:00 a.m. ET. The release will provide the next direct test of the revenue and earnings balance behind the new target.

Prior close anchors the euro view

Trex stock's prior close at Lang & Schwarz was EUR 39.85 on October 5, 2026. The further course of trading is shown by the continuously updated real-time quote of Trex stock.