Jarden downgrades James Hardie on softening conditions
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The news: Jarden analysts have pared their rating on building products manufacturer James Hardie following a softer outlook posted by US homebuilders in quarterly reporting.
The numbers: The analysts cut their 12-month price target on James Hardie to $52 from $54, and their rating to ‘overweight’ from ‘buy’.
Shares in the company are down 1.3% to $48.25 in early trading on the ASX.
The context: Jarden analysts revised their FY25 adjusted net income forecast to USD637 million ($968.3), towards the lower end of James Hardie’s USD630 million to USD700 million guidance due to a softer outlook around affordability and homebuyer confidence point.
Despite the negative short-term earnings momentum, the analysts said they remain confident in the company’s strategy and execution capabilities. North America is James Hardie’s biggest market.
What they said: “Deteriorating short-term conditions and higher commodity cost pressures (pulp, in particular) have led to us paring back our earnings forecasts,” Jarden said in a note.
The source: Jarden research
