James Hardie's Azek Buy Will Take Some Time to Digest -- Market Talk

Dow Jones03-24

2208 GMT - Barrenjoey thinks it will take the market some time to digest James Hardie's US$8.7 billion acquisition of Azek, and downgrades the stock to neutral from overweight as a result. "Azek appears to be a high-quality company but we see the following challenges with the deal," says analyst Brook Campbell-Crawford in a note. Those challenges include a 7% drag on James Hardie's EPS in FY 2026 and FY 2027, and an offer premium that exceeds the likely savings that can be made. It also raises James Hardie's pro-forma leverage to 2.5x in FY 2026, from 0.7x in FY 2024, going into a deteriorating new housing market in the U.S., Barrenjoey says.(david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

March 24, 2025 18:08 ET (22:08 GMT)

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