James Hardie shares rebound 26% from a dip last month: Buy, sell or hold?

James Hardie Industries plc (ASX: JHX) shares have climbed higher into the green in Wednesday’s trade.

At the time of writing, the shares are up around 5% for the day, and changing hands at $32.74 a piece.

Today’s increase means the cement manufacturer’s shares have now rebounded around 26% from a six-month dip in mid-May. The shares have also recouped any losses shed after a dip yesterday.

James Hardie shares are now just over 6% higher year to date, but are still 20% lower than 12 months ago.

Why are James Hardie shares rebounding?

James Hardie’s share price dipped to just $26.02 on the 18th of May as dwindling investor sentiment caused many to shy away from the stock.

But the following week, the global fibre cement manufacturer’s shares started climbing higher after it posted its fourth-quarter FY26 results.

The result was mixed but came in ahead of expectations and some previous guidance figures. 

The company posted a 25% year-on-year increase in net sales driven by additional sales from its acquisition of AZEK, a US-based outdoor building products company.

Excluding that acquisition, organic net sales declined by 2% from FY25. And on the bottom line, the company reported a 75% year-on-year decline in NPAT.

Meanwhile, adjusted EBITDA was up 17% year on year, coming in above previous guidance figures.

It looks like the stabilised earnings result reignited investor confidence.

Why are the shares climbing higher today?

The share price has rebounded again after a temporary dip on Tuesday. 

In a statement to the ASX yesterday, James Hardie said it has been served with a group proceeding filed in the Supreme Court of Victoria.

The company said the proceeding includes allegations that it breached the Corporations Act, the ASIC Act, and the Australian Consumer Law. The claim also includes allegations relating to continuous disclosure obligations and statements made about expected financial performance.

But James Hardie pushed back against the allegations. It said it considers that it has complied with its disclosure obligations at all times, that it denies any liability, and will “vigorously defend” the proceedings.

After a brief sell-off, it seems that investors have concluded that James Hardie shares are still a good buy at the current trading price.

The question now is, how much further can the shares climb?

What do analysts tip for James Hardie shares over the next 12 months?

Brokers are very bullish on the outlook for James Hardie shares and some tip a large upside ahead.

TradingView data shows that 17 out of 22 analysts have a buy or strong buy rating on the stock. The average $36.61 target price implies a potential upside of around 12% at the time of writing. Meanwhile, the $43.16 maximum target price suggests the shares could increase by around another 32% over the next 12 months.

Morgans currently has a buy rating and $29 target price on the shares. The broker said it still sees the shares as undervalued at current levels. Morgans added that FY26 could be “chalked up” as a transformational but financially dilutive year. 

The post James Hardie shares rebound 26% from a dip last month: Buy, sell or hold? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.