William Blair analyst Ryan Merkel has maintained their bullish stance on JHX stock, giving a Buy rating on October 15.
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Ryan Merkel’s rating is based on a combination of factors that highlight the unique situation at James Hardie Industries. Despite the proxy advisory firms ISS and Glass Lewis recommending against the re-election of certain directors, Merkel sees potential in the company’s strategic direction. The removal of directors with significant industry experience, particularly those linked to Azek, could disrupt synergy capture, which Merkel believes is crucial for the company’s growth.
Merkel also notes that U.S. investors largely support the Azek deal, indicating confidence in the company’s strategic partnerships and future prospects. The recommendations from proxy advisors appear to be influenced by the Australian shareholder base, which holds a minority stake. This divergence in shareholder perspectives suggests that the U.S. investor base may have a more favorable view of the company’s potential, supporting Merkel’s Buy rating.