We are initiating coverage of The AZEK Company (AZEK) with a Neutral rating and a Dec. 21 price target of $53 and Trex Company (TREX) with a Neutral rating and a Dec. 21 price target of $109. Critically, from a fundamental perspective, we view both companies favorably, led by strong leadership positions within the composite decking and rail industry, which in turn should continue to gain share from wood for years to come. Of note, both companies are well positioned to maintain if not build upon their market shares via product diversification and end market expansion, among other strategies, which in turn should drive strong double-digit sales growth over at least the next two years. Solid margin expansion should also continue, led by several factors, including volume leverage and operational improvement. However, we view the stocks’ valuations, while reasonable given their multiples