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