Tiger Brokers

BUZZ-Citi questions growth outlook as ASX-listed James Hardie cements AZEK buyout

Reuters
Mar 25, 2025
BUZZ-Citi questions growth outlook as ASX-listed James Hardie cements AZEK buyout

** ASX-listed fiber cement maker James Hardie Industries JHX.AX announces deal to buy U.S. artificial decking maker AZEK AZEK.N in deal priced at $8.75 billion

** Citi acknowledges strategic logic of acquisition but questions organic product development growth outlook and timing of deal

** Acquisition likely to boost revenue, especially with PVC trim, commonly used in construction for pipes, introduction enhancing Northeast siding growth - Brokerage

** Citi flags that deal increases leverage to 2.8x ND/EBITDA, above guidance, potentially worrying investors due to economic uncertainty

** Retains "neutral" rating at PT of A$56

** Stock down 20.1% YTD

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk;))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10