James Hardie stock rating maintained at Overweight by Morgan Stanley

Published 20/08/2025, 15:56
James Hardie stock rating maintained at Overweight by Morgan Stanley

Investing.com - Morgan Stanley (NYSE:MS) has maintained an Overweight rating on James Hardie Industries (NYSE:JHX) (ASX:JHX) while reducing its price target to AUD41.00.

The firm lowered its earnings per share estimates by 19-43% for fiscal years 2026-2028, after adjusting forecasts to align with the company’s FY26 guidance range and incorporating the impact of Azek.

Morgan Stanley views the current risk/reward profile as attractive, with the stock trading at 15 times FY27 estimated price-to-earnings ratio, representing approximately a 30% discount to its 10-year average of 21 times.

The firm acknowledges that a rating re-evaluation is unlikely until there is evidence of a cyclical market rebound, a return to market share gains, and a reduction in the company’s leverage position.

Upcoming catalysts for James Hardie include its Annual General Meeting scheduled for October 30 and second-quarter fiscal 2026 results expected in early November, with analyst Joseph Michael assuming lead coverage of the stock.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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