0321 GMT - There's strategic rationale for James Hardie's planned $8.75 billion takeover of AZEK, but the premium it has agreed to pay is significant, say Barrenjoey analysts in a note. At roughly 37% versus AZEK's last close, James Hardie will need to deliver on its expected cost benefits and notch strong underlying growth across the businesses to justify the transaction, the analysts say. "To get comfortable on the deal, we would need to gain more confidence in the accelerated growth profile of the combined group," they say. Pro forma leverage of 2.8x might also be in focus for investors given the uncertain demand backdrop, they add. Barrenjoey has an overweight rating and A$59.00 target on James Hardie. The stock is down 13% in Sydney at A$40.87. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
(END) Dow Jones Newswires
March 23, 2025 23:21 ET (03:21 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。