Citi slashes PT, downgrades rating on James Hardie over uncertain 2027 US housing market

By Reuters News

** Analysts at Citi downgrade fiber cement maker James Hardie Industries <JHA1.F> to "neutral" rating and cut its price target to A$42.50

** Citi decreases James Hardie's FY27 EBITDA estimates by ~6%, citing divestment of European operations and a softer outlook

** Flags rapidly rising mortgage rates, which can price out future homebuyers and has the potential for new constructions to turn in

** Thirty-year fixed rate mortgages in the US exit September yielding over 7%, higher than 6.3% during the same time last year and the highest they've been this year

** Nine of 13 analysts rate the stock "buy" or higher, four "hold"; their median PT is A$46, according to data compiled by LSEG

** Stock up 19.8% YTD, as of last close

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