Citi has lowered its price target for building materials company James Hardie Industries (JHX) from $35 to $33, maintaining a “neutral” rating on the stock. The adjustment precedes James Hardie’s annual general meeting scheduled for October 30. James Hardie specialises in fibre cement products and systems for residential and commercial construction. The company provides innovative solutions for exterior and interior building applications.
The downgrade reflects Citi’s updated earnings estimates following a review of James Hardie’s recently acquired business, Azek. The broker now anticipates a 19 per cent reduction in the group’s earnings per share (EPS) over the next three years compared to initial projections. This revision directly influenced the decision to lower the price target.
Despite the revised price target from Citi, James Hardie shares demonstrated positive movement in early trading on Monday. Shares were up 2.1 per cent, potentially indicating investor resilience or differing market perspectives on the company’s prospects. The AGM on October 30 will likely provide further insights into the company’s strategy and financial outlook.
