Remodelling The Narrative: JHX Beyond The Housing Cycle
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Leonard Lim32 FollowersFollow5ShareSavePlay(21min)CommentsSummaryJames Hardie Industries plc (JHX) is initiated at BUY with a $30.17 target, reflecting a 46.3% upside by December 2025.Street overstates JHX's cyclicality; post-AZEK, ~70% of revenue is R&R/outdoor-living, providing structural resilience and smoother earnings.The AZEK acquisition synergies are underappreciated; cross-selling and dealer network leverage make management’s revenue targets appear conservative.JHX's dominant US distribution, entrenched builder relationships, and exposure to insurance-driven R&R underpin margin expansion and valuation rerating. Richard Drury/DigitalVision via Getty Images Executive Summary We initiate coverage on James Hardie Industries PLC (JHX) with a BUY recommendation, believing that the Street is too pessimistic about the AZEK acquisition synergies and misunderstands its cyclicality. Our 12-month target priceThis article was written byLeonard Lim32 FollowersFollowAnalyst’s Disclosure:I/we have a beneficial long position in the shares of JHX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.