James Hardie Industries' (ASX:JHX) revised fiscal 2025 guidance is "better than many feared" and "better than share price was implying," Morgan Stanley said in a Tuesday note.

For fiscal 2025, the company expects adjusted net income to be $635 million, compared with its previous forecast of $630 million to $700 million. Analysts polled by Visible Alpha expect $640.7 million.

"Given the recent share prices declines, this is a better outcome than the market was expecting," the investment firm said in the note.

The company's second-quarter strong results were driven by stronger-than-expected Asia-Pacific earnings, the note added.

Morgan Stanley reiterated James Hardie's overweight rating and price target of AU$59.

James Hardie's shares were up nearly 4% in recent Thursday trade.

Price (AUD): $55.21, Change: $+1.86, Percent Change: +3.49%