William Blair analyst Ryan Merkel has maintained their bullish stance on JHX stock, giving a Buy rating today.
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Ryan Merkel’s rating is based on a combination of factors that suggest potential for long-term growth despite recent challenges. James Hardie Industries PLC faced a tough quarter, with a significant miss in first-quarter EBITDA and a downward revision in 2026 guidance. The primary issues stemmed from a slowdown in new residential construction and ongoing channel destocking, particularly in the U.S. South. However, Merkel believes that the company has set a conservative benchmark for the rest of 2026, which could position it for future recovery.
In the long run, Merkel sees potential in James Hardie’s strong EBITDA margins and the secular growth in material conversion. Despite the current setbacks, the company remains committed to reducing its net debt and has shown early progress in commercial and cost synergies. While the short-term outlook is challenging, Merkel’s Buy rating reflects confidence in the company’s ability to navigate these difficulties and capitalize on its strategic initiatives over time.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a A$51.15 price target.