Analyst Shaurya Visen of Bank of America Securities reiterated a Sell rating on James Hardie (JHIUF – Research Report), reducing the price target to A$42.00.
Shaurya Visen’s rating is based on several factors that indicate a cautious outlook for James Hardie Industries. The analyst has lowered the FY26 earnings forecast due to reduced volume expectations in North America, reflecting a more subdued demand environment than previously anticipated. Additionally, the company’s earnings projections are considered overly optimistic compared to consensus estimates, which are now 6% to 9% below market expectations.
Moreover, the outlook for new construction in the US has been downgraded, with single-family housing starts expected to slow due to high mortgage rates and increased unsold inventory. Rising input costs, particularly in pulp, have also contributed to the cautious stance. Despite the appeal of fiber cement products and a shift towards the more stable repair and remodel market, the valuation remains demanding, prompting a Sell recommendation.