Citi cuts James Hardie PT, keeps buy on stabilisation signs

James Hardie Industries

20/05/2026 22:49

** James Hardie JHA1.F, JHX.AX remains a "buy" at Citi after a broadly "solid" annual result

** Brokerage, however, trims its price target to A$36.50 per share, citing higher depreciation and interest charges that weigh on NPAT despite largely unchanged EBITDA estimates

** Citi flags Siding & Trim (S&T) segment as the standout, says drag came from the Deck, Railing & Accessories (DR&A) segment, where weather-related issues saw 1Q27 guidance land at $78-82 million, roughly $20 million below Visible Alpha consensus

** Brokerage, however, views the miss as temporary, saying headwind is confined to only the first quarter and does not bleed into the rest of the year

** Citi also notes that JHX appears to be stabilising ahead of a potential housing market recovery

** Stock down 14% this year

 (Reporting by Rajasik Mukherjee in Bengaluru)

 ((Rajasik.Mukherjee@thomsonreuters.com))