Morningstar trims fair value estimate on ASX-listed James Hardie on Azek deal concerns

James Hardie Industries

22/05/2025 20:46

** Analysts at Morningstar trim fair value estimate on ASX-listed James Hardie Industries JHX.AX by 13% to A$48 per share

** The Dublin-based building materials maker on Wednesday reported 9% drop in its FY adjusted net income, compared to last year

** Results raise fresh concerns over company's planned $8.8 billion buyout of U.S.-based Azek, as rising trade tensions and looming tariffs threaten to further curb spending by homeowners on renovation projects

 ** Fair value estimate downgrade reflects Azek's inclusion in Morningstar estimates and its assessment that Azek's business is weaker than JHX's

** "We think it will be difficult for the combined group to make up for the premium offer price" - Morningstar

** Six of 12 analysts rate the stock "buy" or higher, six "hold"; their median PT is A$44.16, according to data compiled by LSEG

** Stock down nearly 28% YTD, as of last close

(Reporting by Roshan Thomas in Bengaluru)

((Roshan.Thomas@thomsonreuters.com))