JHX is a building products company with significant overseas penetration, as opposed to property per se, but it will benefit from a construction boom in Australia. With a number of its Australian peers being acquired, CSR being the most recent casualty, it stands tall in our opinion. With the alternatives in the space diminishing, James Hardie is arguably the best remaining operator of them all, which is reflected by the stock’s impressive appreciation over the last 18-months. This is a stock that will likely find itself on our Hitlist if we see another ~10% retracement, as it did in the 3Q of 2023.
- We are keen buyers of JHX from a risk/reward perspective in the $53-55 area.
MM is bullish on JHX medium-term
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