Deutsche Bank expects margins to remain at the top of the 20-25% guidance range in the first quarter but considers there is a risk new US residential volumes are softer.
Despite this, the US renovation market remains strong and primary demand growth should continue to recover. The stock is the broker’s sector pick. Target is $25.35. Buy rating.
Target price is $25.35.Current Price is $23.04. Difference: $2.31 – (brackets indicate current price is over target). If JHX meets the Deutsche Bank target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).