JHX has surged over 80% from its December low with gains accelerating last month following an excellent 1Q24 result which notably saw a big beat on margins e.g. The North American business enjoyed >30% margins on volumes that were down ~9%. Hence when activity does pick up JHX is perfectly positioned to deliver for shareholders although by definition economic activity remains a variable into/through 2024.
- We are looking for a test of $50 over the coming months but the advance is maturing in our opinion – our exit ~$40 was clearly premature.
- While we remain bullish on JHX we don’t believe the risk/reward is exciting chasing the stock in the $47 area.
MM is bullish on James Hardie (JHX) short-term
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