William Blair analyst Ryan Merkel has maintained their bullish stance on JHX stock, giving a Buy rating today.
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Ryan Merkel has given his Buy rating due to a combination of factors that suggest potential for growth despite recent stock declines. The shares of James Hardie Industries PLC fell by 4% following the announcement of management’s long-term incentive targets, which were perceived as conservative compared to market expectations. However, Merkel views these targets as achievable benchmarks set in response to the current uncertain macroeconomic environment.
Merkel believes that management is still committed to achieving significant growth in North America, with targets of 4% outgrowth and 10%-12% top-line growth under normal market conditions. While the long-term incentive targets for North America sales CAGR are set at a modest “at least 2%” from fiscal 2026-2028, Merkel expects the company to exceed these targets, especially if interest rates decline. The conservative nature of these targets, combined with potential synergies from AZEK and a historical sales CAGR of 11%, supports Merkel’s optimism for future performance.
In another report released today, Bank of America Securities also maintained a Buy rating on the stock with a A$36.95 price target.