Morningstar trims fair value estimate on James Hardie on Azek deal concerns

Australia-listed shares of James Hardie Industries JHX.AX shed 6.1% so far this week, set for their weakest week since March 31, if losses sustain

Stock up 2.4% at A$36.95 on the day

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

Analysts at Morningstar trim fair value estimate on James Hardie by 13% to A$48 per share

Results raise fresh concerns over co's planned $8.8 billion buyout of U.S.-based Azek AZEK.N, 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

Stock down 26.1% YTD, including current session's moves