“James Hardie Industries plc (JHX) has reiterated its financial year 2025 guidance, while forecasting ‘particularly challenging’ conditions for the second quarter of financial year 2025, resulting in second quarter guidance falling c.13% short of consensus (and our) adjusted net income expectations,” Raymond said.
“This weak second quarter invariably places additional weight on the second half of 2025, which includes a seasonally weaker December period.
“With management reiterating financial year 2025 adjusted net income guidance of US$630-700 million, we set our forecast at the lower end of the range, acknowledging that lower interest rates will be a positive, when they occur.
“JHX is arguably the highest quality building materials business on the ASX and one of the few businesses exposed to cyclical discretionary US consumer demand, a segment of the economy to benefit from lower rates.
“We retain our ADD rating, increasing our target price slightly to A$57.25 a share,” Raymond said.
James Hardie Industries plc (JHX)
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