** Australia-listed shares of James Hardie Industries JHX.AX down 2.1% at A$30.26

** Macquarie says the fibre cement maker's disappointing annual results and weak FY26 guidance for its North American division was "certainly a shock"

** Brokerage, however, flags that the stock has corrected materially and sees potential for meaningful earnings recovery from its current lows

** Macquarie sees expected U.S. Fed rate cuts, strengthening of AZEK integration and a new housing and remove and replace (R&R) market featured by pent-up consumer demand, among others, as earnings drivers

** Brokerage maintains "outperform" tag, marginally hikes target price to A$37.2 from A$36.9

** Stock down 39.4% YTD, including current session moves

(Reporting by Nikita Maria Jino in Bengaluru)

((Nikita.Jino@thomsonreuters.com))