Shaurya Visen, an analyst from Bank of America Securities, maintained the Buy rating on James Hardie. The associated price target was lowered to A$36.95.
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Shaurya Visen has given his Buy rating due to a combination of factors that highlight James Hardie’s strategic positioning in the market. The company is poised to benefit from significant structural trends in the U.S. building products sector, particularly the aging housing stock, which is expected to drive repair and remodel activities. This sector accounts for approximately 70% of James Hardie’s volumes, suggesting a stable demand base.
Moreover, the company’s focus on product conversion, with fiber cement and composite decking gaining market share over traditional materials like vinyl and wood, further strengthens its growth prospects. Despite the challenges in interpreting the long-term incentive plan metrics, the expected synergies and growth targets align with market expectations, providing a favorable risk-reward scenario for investors. The valuation metrics, including the price-to-earnings ratios, also support the Buy recommendation, as they indicate a reasonable valuation relative to the company’s growth potential.
According to TipRanks, Visen is ranked #3581 out of 10012 analysts.
In another report released on September 15, Macquarie also maintained a Buy rating on the stock with a A$37.20 price target.