Analyst Shaurya Visen of Bank of America Securities reiterated a Sell rating on James Hardie (JHIUF – Research Report), with a price target of A$43.65.
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Shaurya Visen has given his Sell rating due to a combination of factors impacting James Hardie’s financial outlook. Despite maintaining their FY25 earnings guidance, the company is facing challenges with pricing in the North American market, which has led to a reduction in profit estimates for FY26 and FY27. The price objective has been adjusted downward, reflecting these lowered expectations and the existing valuation concerns.
Additionally, James Hardie’s performance in the third quarter exceeded expectations primarily due to lower corporate costs, rather than strong pricing or volume growth. The company’s long-term targets for average selling price growth are not being met, which casts doubt on future revenue projections. Given the current demanding valuation and what Visen perceives as overly optimistic consensus estimates, the risk-reward profile is seen as unfavorable, prompting the Sell rating.