UPDATE: Deutsche Bank Downgrades James Hardie Industries to Hold on New Zealand Liability
In a report published Wednesday, Deutsche Bank analyst Emily Behncke downgraded the rating on James Hardie Industries (NYSE: JHX) from Buy to Hold, and slightly lowered the price target from $10.00 to $9.28.
In the report, Behncke noted, “James Hardie announced today the NZ Ministry of Education has commenced litigation against James Hardie and other parties in relation to ‘weathertightness defects' (or leaky schools) at ~300 schools in NZ. Based on numbers published by the NZ Ministry of Education, the total repair cost estimate is NZ$1.5b. In addition to the repair costs, there may be unspecified and unquantified damages in relation to the defects. We reduce our recommendation to Hold.”
James Hardie Industries closed on Tuesday at $9.59.
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