James Hardie's ASX shares slide; Morgan Stanley flags tougher housing backdrop

** Australia-listed shares of James Hardie Industries fall 5.3% to A$37.26, their lowest point since August 3

** The fiber cement maker reaffirmed FY27 earnings forecast and lifted FY27 free cash flow outlook at its Investor Day on Tuesday

** Morgan Stanley says positive developments were largely pre-announced, while mortgage rates nearing 7% point to a tougher U.S. housing backdrop

** Citi noted JHX upgraded its cost synergy timeline to this year; MS analysts said they view improved cost-synergy timing from the AZEK acquisition positively after initial investor concerns over execution

** Company unveiled a "financial growth algorithm" targeting 4%-7% growth above market, driven by material conversion opportunities, self-help initiatives and expected revenue synergies

** Citi says the target implies only modest siding volume growth above market levels, noting revenue synergies and pricing benefits are also included in the plan

** Shares up around 20.8%, YTD