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)
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