Morningstar trims fair value estimate on James Hardie on Azek deal concerns

James Hardie Industries

23/05/2025 04:16

Updates

** Australia-listed shares of James Hardie Industries JHX.AX shed 6.1% so far this week, set for their weakest week since March 31, if losses sustain

** Stock up 2.4% at A$36.95 on the day

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

** Analysts at Morningstar trim fair value estimate on James Hardie by 13% to A$48 per share

** Results raise fresh concerns over co's planned $8.8 billion buyout of U.S.-based Azek AZEK.N, 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

** Stock down 26.1% YTD, including current session's moves

(Reporting by Roshan Thomas and Nikita Maria Jino in Bengaluru)

((Roshan.Thomas@thomsonreuters.com))