Truist Securities maintains buy rating on James Hardie Industries stock

Published 04/06/2025, 14:28
Truist Securities maintains buy rating on James Hardie Industries stock

On Wednesday, analysts at Truist Securities reiterated their Buy rating on James Hardie Industries stock (NYSE:JHX) with a price target of $35.00. The analysts highlighted the ongoing developments in James Hardie’s acquisition of AZEK, including an upcoming shareholder vote scheduled for June 27th.

The analysts noted that the specifics of the acquisition are becoming clearer, with details emerging about bank-led financing and the cancellation of James Hardie’s American Depositary Receipts (ADR) in conjunction with its listing on the New York Stock Exchange. With a strong current ratio of 2.1 and liquid assets exceeding short-term obligations, the company appears well-positioned for this strategic move. They expressed an expectation for the deal to close, citing AZEK’s current trading status and feedback from shareholders, but acknowledged that reviews from proxy firms could pose uncertainties.

In addition to the acquisition, James Hardie Industries has been expanding its relationships with home builders. The company is reportedly adopting a strategy of exclusivity, which prevents the use of other suppliers for hardwood and trim products. This approach is seen as a new trend in the industry.

The analysts at Truist Securities believe that James Hardie Industries shares continue to offer significant value, maintaining their Buy rating. They emphasized the company’s strong position within their coverage, underscoring its potential for growth and value in the market.

In other recent news, James Hardie Industries has entered into two significant partnerships, enhancing its market presence. The company secured a three-year agreement with Pahlisch Homes to supply Hardie® siding and trim for new developments in the Pacific Northwest and Northern Rockies. Additionally, James Hardie signed a similar exclusive deal with McKinley Homes, covering new developments in five Southeastern U.S. states. These collaborations are expected to provide high-quality, durable exterior solutions to a broader range of homeowners.

In financial updates, Citi analysts have adjusted their price target for James Hardie to AUD41.50 while maintaining a Neutral rating, citing the company’s recent execution challenges and broader economic uncertainties. Truist Securities also revised their price target to $35, retaining a Buy rating, with the expectation of slight growth in 2025 driven by effective pricing strategies. Meanwhile, BofA Securities maintained a Buy rating with a $28 price target, projecting a 6% EBITDA growth for fiscal year 2026, despite a modest increase in North America’s average selling price. These analyst perspectives reflect varying expectations for James Hardie’s performance amid current market dynamics.

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