Morningstar trims fair value estimate on ASX-listed James Hardie on Azek deal concerns

Analysts at Morningstar trim fair value estimate on ASX-listed James Hardie Industries JHX.AX by 13% to A$48 per share

The Dublin-based building materials maker on Wednesday reported 9% drop in its FY adjusted net income, compared to last year

Results raise fresh concerns over company's planned $8.8 billion buyout of U.S.-based Azek, as rising trade tensions and looming tariffs threaten to further curb spending by homeowners on renovation projects

Fair value estimate downgrade reflects Azek's inclusion in Morningstar estimates and its assessment that Azek's business is weaker than JHX's

"We think it will be difficult for the combined group to make up for the premium offer price" - Morningstar

Six of 12 analysts rate the stock "buy" or higher, six "hold"; their median PT is A$44.16, according to data compiled by LSEG

Stock down nearly 28% YTD, as of last close