Morningstar agree. From this morning's HS:But Morningstar equity analyst Esther Holloway says the move on the complementary US business is “fair, with synergies expected”.
“On a preliminary assessment we view the offer as slightly value-destructive but not enough to move our fair value estimate, unchanged at $55 per share for wide-moat James Hardie,” Ms Holloway says. “We believe the market got this one wrong. We estimate the market is only ascribing about half the merger benefits and applies a lower 12 times enterprise value/EBITDA multiple on the combined group, implied by the preannouncement closing price.
“Using a 14 times EV/EBITDA multiple—the same as James Hardie’s multiple prior to the deal being announced and similar to Azek’s at its last undisturbed trading price — we think the bid price is fair assuming all $US300m of cost savings and revenue gains are achieved from fiscal 2030.”
She is also pencilling in cross-selling opportunities to generate $US500m in additional sales from fiscal 2030.
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Last
$36.88 |
Change
-0.270(0.73%) |
Mkt cap ! $15.85B | |||
| Open | High | Low | Value | Volume |
| $37.38 | $37.59 | $36.84 | $236.6M | 6.355M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 4270 | $36.88 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $36.92 | 3532 | 1 |
View Market Depth
| Last trade - 16.10pm 20/06/2025 (20 minute delay) ? |
| JHX (ASX) Chart |