James Hardie Industries (JHX) Shares Recommendation

Macquarie Research Equities (MRE), has reiterated their Outperform stock recommendation for James Hardie Industries (JHX) shares with a 12 month share price target of $8.00. The stock analyst believes that JHX is "represents good value at current levels." James Hardie shares are recently touching seven week highs after reassuring investors about its earning guidance at its Annual Information Meeting. Share prices edged higher even after data out overnight in the US that added further concerns over the state of the US housing market. However, the stock analyst also observes that there is a downside risk to the company's bottom line if housing numbers continues to slide. With regards to James Hardie and asbestos, MRE notes that:

The existing MRCF fund (paying existing claimants) has sufficient funds to pay asbestos claims until early 2007 and thus interim ‘top ups’ will be required if the Final Funding Agreement negotiations are significantly prolonged. JHX remains in talks with the NSW state government and the ATO about the Special Purpose Fund but is critical for the payments to be tax free for the SPF in order for the FFA to be successful. Management continues to work on this and MRE feel that once a resolution occurs it will be marginally positive for the stock.

James Hardie Industries Limited is listed on the Australian Stock Exchange (ASX) under stock code JHX. You can view their investor website here. JHX was listed on the ASX on 15 October, 2001. James Hardie is involved in research, development, manufacture, sale and marketing of fibre cement building materials. Find out the meaning of the recommendations in this primer. Browse for other broker recommendations. Check your charts and good luck with your share trading!