JHX is then obvious stock to consider in the segment with over 70% of its revenue coming from the US. The stock has been the naughty corner for almost 18 months, but its huge $US8.75bn takeover of US outdoor living products business AZEK has left it largely friendless amongst local investors. The unpopular takeover was compounded when JHX delivered weak guidance in May, although this was predicated on a weak US housing market. The major tailwind of declining interest rates and a housing shortage should help JHX in the medium term, but it’s likely to struggle to push above $45 in the short term unless the US activity accelerates. We will reassess our position if/when this unfolds.
- We can see JHX testing above $45 in the coming weeks/months: MM holds JHX in its Active Growth Portfolio.
MM is bullish towards JHX
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