-- James Hardie Industries (ASX:JHX) is best positioned amongst Australian building products stocks to weather headwinds amid a challenging US housing outlook, Jefferies said in a Wednesday note.
The equity research firm pointed to the company's internal initiatives and conservative set-up for fiscal 2027 driving earnings growth in the mid-single-digit percentage range.
It added that Reliance Worldwide's (ASX:RWC) outlook remains challenged as a result of cost headwinds related to copper and tariffs, while Reece's (ASX:REH) investment in its US physical footprint entails a near-term cost for shareholders with only minor improvement anticipated in the short term.
A Reece store analysis indicates a slower ramp-up of earnings than assumed by consensus forecasts, Jefferies said.
The equity research firm maintained a buy recommendation on both James Hardie and Reliance Worldwide, and a hold rating on Reece. It cut the price target on James Hardie to AU$42 from AU$46, lowered the price target to AU$15.90 from AU$16.50 for Reece, and trimmed the price target on Reliance Worldwide to AU$3.80 from AU$4.05.
James Hardie Industries' shares fell almost 5% in recent Thursday trade, Reliance Worldwide's shares shed 3%, and Reece's shares tumbled 6%.