By Davit Kirakosyan
Investing.com -- Here is your daily Pro Recap of the biggest analyst picks you may have missed since yesterday. As always, InvestingPro subscribers got this news first. Start your free 7-day trial to get on board.
Azek and Trex upgraded at BofA as the industry moves past headwinds
BofA Securities upgraded Azek (NYSE:AZEK) and Trex (NYSE:TREX), noting that the building products industry has moved past the headwinds.
The firm believes the composite decking industry is poised to recover in the second half of this year following a challenging 2022. According to the BofA, both companies should benefit from the conversion to composite decking, which is expected to reach 45-50% of the industry from mid-20% currently.
The firm believes current sales for Trex and Azek are likely tracking ahead of guidance, indicating a double-digit percentage drop in sell-outs for 2023.
Trex shares rose more than 2% yesterday, while Azek shares closed with a 1.70% gain.
Relay Therapeutics Upgraded at Raymond James & Jefferies, sell-off is overdone
Raymond James upgraded Relay Therapeutics (NASDAQ:RLAY) to Strong Buy from Outperform with a price target of $29.00 as it believes Tuesday’s more than 36% share sell-off on RLY-2608 data to be overdone given the platform validation on safety and early nature of the disclosure.
Meanwhile, Jefferies upgraded the company to Hold from Underperform while cutting its price target to $12.50 from $16.00.
Shares gained more than 6% yesterday.
Comstock Resources upgraded to Neutral
Citi upgraded Comstock Resources (NYSE:CRK) to Neutral from Sell and raised its price target to $12.00 from $10.00, noting it favors the company’s large acreage position in the Haynesville, as well as its recent success in improving its drilling efficiency.
According to Citi, the company benefits from a cost-effective operating structure and favorable natural gas differentials, resulting in higher cash margins compared to competitors. This is likely to lead to a reduction in organic leverage, but with high relative exposure to aggregate natural gas pricing.
