Figma Shares Indicated To Open $105/$110
On Wednesday, BofA Securities maintained its Buy rating on James Hardie Industries (NYSE:JHX) with a steadfast $28.00 price target. The firm’s analysts stand by their positive outlook despite the stock’s 6% drop on the same day. Currently trading at $24.73, InvestingPro analysis suggests the stock is undervalued, aligning with BofA’s bullish stance. BofA Securities believes that the market’s response to James Hardie’s fourth-quarter results does not reflect the company’s true potential, suggesting that the current share price presents an approximately 22% return opportunity.
The analyst’s projection for the fiscal year 2026 includes an EBITDA of $1,147 million, indicating a year-over-year growth of 6%, which aligns with the company’s guidance of low single-digit growth. This forecast builds upon the company’s current EBITDA of $1,088.8 million and healthy gross profit margin of 39.45%. This forecast incorporates a 5% revenue growth in North America, spurred by a combination of 2% volume increase and 3% pricing growth, again in line with the company’s expectations of low single-digit growth.
Despite a modest year-over-year increase of 1% in North America’s average selling price during the fourth quarter, which fell short of expectations, BofA Securities does not interpret this as a sign of James Hardie losing its pricing power. The perceived weakness is attributed to a significant downturn in multi-housing starts, which typically have a higher reliance on ColorPlus, affecting the product mix and consequently the average selling price by a negative impact of 1.4 percentage points.
The firm’s estimates for net profit after tax (NPAT) for fiscal years 2026 and 2027 remain largely consistent with previous forecasts, showing a slight 0-1% change. This is due to a minor decrease in North American volumes, which is somewhat compensated by lower corporate costs than initially anticipated. These factors contribute to BofA Securities’ price objective of A$44.45 for James Hardie Industries, with the target multiple remaining unchanged. InvestingPro data reveals management’s aggressive share buyback program and strong financial health score, with 8 additional exclusive ProTips available to subscribers. Get deeper insights with InvestingPro’s comprehensive research report, part of their coverage of 1,400+ US stocks.
In other recent news, James Hardie Building Products Inc. reported several significant developments. The company has entered into an exclusive three-year agreement with McKinley Homes, supplying its Hardie® siding and trim for new developments across five states until 2027. Additionally, James Hardie expanded its partnership with CBH Homes in Idaho, making CBH the first builder in the region to offer a complete suite of Hardie® products. The company also secured a multi-year supply agreement with Daiwa House USA’s subsidiaries, further solidifying its market position as a leading provider of siding and trim for new homes.
James Hardie Industries plc has filed its latest report to shareholders with the U.S. Securities and Exchange Commission, providing transparency into its operations and compliance with international reporting standards. In a move towards innovation, James Hardie launched the Hardie™ Designer, an AI-powered home design tool developed in collaboration with Hover. This tool allows homeowners to visualize different design styles and Hardie® product options on their home’s exterior using a single photo. These developments highlight James Hardie’s commitment to quality, innovation, and strategic partnerships in the building materials industry.
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