Analyst Shaurya Visen of Bank of America Securities reiterated a Buy rating on James Hardie, boosting the price target to A$40.65.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Shaurya Visen has given his Buy rating due to a combination of factors that highlight James Hardie’s strong performance and potential for growth. The company’s preliminary second-quarter results exceeded expectations, with revenue and EBITDA surpassing both pre-release estimates and consensus figures. This positive outcome was largely driven by lower-than-expected destocking, indicating that distributors and customers maintained higher inventory levels than anticipated.
Furthermore, James Hardie is well-positioned to benefit from key structural trends in the US building products market. The aging housing stock in the US is expected to support repair and remodel activities, which constitute a significant portion of the company’s volumes. Additionally, the ongoing shift towards fiber cement and composite decking over traditional materials like vinyl and wood presents further growth opportunities. Despite recent market sell-offs, the risk-reward profile remains favorable, with expectations of earnings recovery in the coming fiscal years.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a A$46.00 price target.
Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is neutral on the stock.