Treasure Chest: James Hardie Election Outperformer

This story features JAMES HARDIE INDUSTRIES PLC. For more info SHARE ANALYSIS: JHX

By Greg Peel

Citi’s analysis of the US presidential cycle reveals James Hardie ((JHX)) has on average outperformed the the ASX200 in each first year post-election since 1994.

The broker has long contended James Hardie maintains an appeal as a high margin, high quality building materials company with leverage to the modest but ongoing US housing recovery.

The recent pullback in stock price provides a rare opportunity, the broker declares, to upgrade its recommendation to Buy from Neutral on an unchanged $20.50 target, which suggests an expected total return of 16.3% for the year ahead.

Ord Minnett also cited the pullback in share price in upgrading its recommendation for James Hardie last week, albeit to Hold from Lighten.

Otherwise, the FNArena database currently shows five Buy and two Hold or equivalent ratings for the stock and a $21.54 consensus target.
 

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