The investor briefing has provided further detail on how James Hardie will build a consumer brand. Marketing is being increased to homeowners to stimulate demand and penetrate new areas of the cladding market.
The company has explained there are 44m homes in the US over 40 years old that could use some renovation, and gaining 5% share of this market would translate to refurbishing around 2.2m homes.
The broker was pleased the commitment to the prior 35/90 strategy has been maintained. Buy rating and $47 target retained.
Sector: Materials.
Target price is $47.00.Current Price is $41.29. Difference: $5.71 – (brackets indicate current price is over target). If JHX meets the UBS target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
