James Hardie (JHIUF – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst yesterday. Analyst Shaurya Visen from Bank of America Securities maintained a Buy rating on the stock and has a A$43.40 price target.
Shaurya Visen has given his Buy rating due to a combination of factors, including the potential for earnings per share (EPS) growth following the proposed acquisition of AZEK. Despite some investor skepticism regarding James Hardie’s historical performance with mergers and acquisitions, particularly with the Fermacell acquisition, Visen sees the AZEK deal as potentially accretive to EPS by the fiscal year 2027.
Visen acknowledges the negative sentiment among domestic investors but notes that offshore investors are more optimistic about the company’s prospects. He also highlights the CEO’s strong track record in M&A integration, which could bode well for the success of the AZEK acquisition. The alignment of product markets, especially in North America, further supports the potential benefits of the acquisition, leading to Visen’s positive outlook on the stock.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a A$55.00 price target.