Update shared on04 Sep 2025
Fair value Decreased 2.03%James Hardie Industries' consensus price target has edged down to A$34.17 as weaker-than-expected Q1 results and guidance—mainly driven by reduced North American siding volume amid soft homebuilder demand—have led to market share concerns, despite analysts highlighting long-term growth potential and the strategic Azek acquisition.
Analyst Commentary
- Q1 earnings and FY26 guidance missed consensus expectations, mainly due to a sharp decline in North American siding volume, driven by weak homebuilder demand, high interest rates, tariff volatility, and ongoing home affordability issues.
- Reduced demand has led to production cuts and inventory reduction across the sector, with some analysts now raising concerns about potential market share loss in the North American siding segment.
- Bullish analysts highlight James Hardie’s leading positions in key categories, strong and recognized brand portfolio, and durable, low-maintenance products serving a large addressable market.
- The Azek acquisition is seen as a transformative catalyst, providing commercial synergy opportunities, accelerating growth, margin expansion, and supporting the company’s ability to outgrow market trends.
- Long-term projections reflect secular growth from material conversion, with several analysts seeing 10%-12% sales growth, 12%-15% EBITDA growth, and 30%+ share price upside potential.
What's in the News
- James Hardie Industries plc (ASX:JHX) dropped from S&P/ASX 20 Index
Valuation Changes
Summary of Valuation Changes for James Hardie Industries
- The Consensus Analyst Price Target has fallen slightly from A$35.00 to A$34.17.
- The Future P/E for James Hardie Industries has significantly risen from 27.53x to 41.62x.
- The Consensus Revenue Growth forecasts for James Hardie Industries remained effectively unchanged, at 16.1% per annum.
Disclaimer
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