Further input cost reductions strengthen FY20/21 expectations. Positive end market data and early US reporting commentary leads Credit Suisse to increase North American earnings estimates by 2% for FY20 and 6% for FY21.
In Europe, Fermacell appears to be a better quality business than the broker previously thought, with a more expansive product range and less chance of encroachment by competitors.
The company’s second quarter results are scheduled for November 7. Outperform rating maintained. Target rises to $28.90 from $23.70.
Target price is $28.90.Current Price is $25.05. Difference: $3.85 – (brackets indicate current price is over target). If JHX meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).