2326 ET - Building materials supplier James Hardie appeals more to Jefferies than Reece, at least until the latter's U.S. strategy becomes clearer. Jefferies starts coverage of Reece at hold with a A$15.90/share price target, some 10% higher than the stock's A$14.14 closing price on Tuesday. "Reece faces multiple near term challenges led by a difficult U.S. housing market and mature ANZ business now facing increasing competition," analyst Ramoun Lazar says. "Its ability to replicate success in the U.S. is also unclear given new entrants and competitor network density." Jefferies says the recent decline in U.S. mortgage rates might improve sentiment toward U.S. homebuilders. Still, it contends that Reece's valuation is relatively expensive compared to James Hardie, which ended Tuesday at A$34.80. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

January 20, 2026 18:26 ET (23:26 GMT)

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