Citi questions growth outlook as ASX-listed James Hardie cements AZEK buyout

James Hardie Industries

24/03/2025 18:34

** ASX-listed fiber cement maker James Hardie Industries JHX.AX announces deal to buy U.S. artificial decking maker AZEK AZEK.N in deal priced at $8.75 billion

** Citi acknowledges strategic logic of acquisition but questions organic product development growth outlook and timing of deal

** Acquisition likely to boost revenue, especially with PVC trim, commonly used in construction for pipes, introduction enhancing Northeast siding growth - Brokerage

** Citi flags that deal increases leverage to 2.8x ND/EBITDA, above guidance, potentially worrying investors due to economic uncertainty

** Retains "neutral" rating at PT of A$56

** Stock down 20.1% YTD

 (Reporting by Kumar Tanishk in Bengaluru)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk;))