IBP - Trex Installed Building Products stocks drops on JPMorgan downgrade; Azek rises

Trex (NYSE:TREX) stock drops 3.7% and Installed Building Products (NYSE:IBP) slips 1.4% after JPMorgan analyst Michael Rehaut downgrades the two building materials stocks. The analyst also upgraded Azek (AZEK +1.0%) to Overweight as he believes its current valuation doesn't fully price in its fundamental prospects over the next couple of years as well as on a longer term basis. With fundamentals fully reflected in Trex's (TREX) valuation, Rehaut expects relative underperformance in the next six to 12 months; cuts to Underweight. Trex (TREX) total return of 63% YTD outpaced the 20% average increase for JPMorgan's building products universe. "As a result, following the stock's strong 2021 performance and full valuation, the latter of which is likely fully pricing in a continued strong fundamental performance in 2022, we prefer a better entry point for Trex (TREX), at least on a relative basis," the analyst writes in a note to clients. Rehaut also downgrades Installed

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Trex, Installed Building Products stocks drops on JPMorgan downgrade; Azek rises