’Reddit is built for this moment’ - Stock soars on crushed earnings
CHICAGO - James Hardie Building Products Inc. (NYSE: JHX), a global leader in fiber cement home siding with a market capitalization of $10.2 billion and annual revenue of $3.9 billion, has expanded its partnership with CBH Homes, marking the Idaho-based builder as the first to offer a complete suite of Hardie® siding and trim products to its customers. This move by CBH Homes is set to introduce a new level of durability and design options for homebuyers in the region. According to InvestingPro analysis, James Hardie maintains strong financial health with liquid assets exceeding short-term obligations.
The collaboration is a strategic step for CBH Homes, which has been recognized as Idaho’s top builder for 19 years and is known for its commitment to quality and affordability. "By offering Hardie® siding and trim products, CBH Homes aims to provide homebuyers with not only enhanced protection but also greater design versatility," stated Corey Barton, CEO of CBH Homes. The partnership aligns with James Hardie’s strong market position, reflected in its impressive 39.5% gross profit margin.
James Hardie’s siding solutions are renowned for their non-combustible properties and resistance to damage from pests, water, and extreme weather, offering homeowners peace of mind regarding safety and maintenance. Sean Gadd, President of James Hardie North America, emphasized the significance of the agreement in meeting the evolving needs of both builders and homeowners.
The extended range of James Hardie products available through CBH Homes will allow for personalized exterior designs, catering to a variety of architectural preferences. This initiative is expected to set a new benchmark for home quality and style within Idaho’s housing market. InvestingPro data suggests the stock is currently undervalued, with analysts maintaining positive recommendations. For deeper insights into James Hardie’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
James Hardie and CBH Homes are looking forward to a partnership that promises to deliver homes that not only stand out aesthetically but also meet the highest standards of construction quality. The information for this article is based on a press release statement.
In other recent news, James Hardie Industries has entered into a multi-year supply agreement with Daiwa House USA subsidiaries, including Stanley Martin Homes, CastleRock Communities, and Trumark Homes. This agreement positions James Hardie as the exclusive provider of siding and trim for new homes built by these companies through 2027. Additionally, James Hardie has launched an AI-powered home design tool called Hardie™ Designer, in collaboration with Hover, allowing homeowners to visualize their home’s exterior with Hardie® products using a single photo. This tool aims to simplify the renovation process by providing a real-time, photorealistic design experience.
Truist Securities has reiterated its Buy rating on James Hardie, maintaining a price target of $45. The firm highlighted the strategic value of James Hardie’s collaboration with AZEK, noting potential synergies due to strong brand names and the company’s contractor network. Meanwhile, BofA Securities has upgraded James Hardie to a Buy rating, raising the price target to AUD43.40. The analysts are optimistic about the stock’s potential for earnings per share accretion from fiscal year 2027, assuming the completion of the AZEK acquisition.
James Hardie’s recent stock price decline of 19% since the acquisition announcement is seen by BofA as an attractive entry point for investors. The firm emphasizes James Hardie’s reputation as a best-in-class company with a significant competitive moat. These developments reflect confidence in James Hardie’s market position and potential growth, particularly in light of the anticipated benefits from the pending AZEK acquisition.
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