UBS raises its target price for James Hardie by 5% to $58 following a “good” 3Q result and “solid” FY23 guidance. Strong volumes ex Europe, the Middle East & Africa (EMEA) was partially offset by cost inflation, explains the broker.
The analyst retains conservative market growth assumptions and acknowledges the risk from rising mortgage rates. However, pent-up demand and structural covid tailwinds are expected to be supportive. The Buy rating is unchanged.
Sector: Materials.
Target price is $58.00.Current Price is $49.60. Difference: $8.40 – (brackets indicate current price is over target). If JHX meets the UBS target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
