The S&P/ASX 200 Index (ASX: XJO) blue-chip stock James Hardie Industries plc (ASX: JHX) could be one of the leading larger opportunities right now, according to one of the leading fund managers.
Experts at Wilson Asset Management manage the listed investment company (LIC) WAM Leaders Ltd (ASX: WLE), which aims to actively invest in larger ASX-listed businesses.
In other words, the investment team is willing to make investments and sales based on whether they think valuations are attractive.
WAM Leaders named James Hardie as one of its most compelling holdings right now.
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What's so appealing about the ASX 200 blue-chip stock?
The company describes itself as an industry leader in exterior home and outdoor living solutions, with a portfolio that includes fibre cement, fibre gypsum, and composite and PVC decking and railing products.
It's a global business, with a presence in North America, Europe, Australia and New Zealand.
However, the company recently announced plans to sell its European operations, including the sale of Fermacell to Holcim for €840 million (or US$980 million).
The ASX 200 blue-chip share explained that proceeds will be used to "accelerate deleveraging and return capital to shareholders."
James Hardie also said it intends to close its European fibre cement business, subject to customary legal, regulatory and employee (including competent works council) consultation requirements.
WAM noted that James Hardie Industries delivered a solid first quarter FY27 result.
The investment team said that the ASX 200 blue-chip share's core North American fibre cement business returned to volume growth supported by continued market share gains. This contributed to an upgrade of the company's full-year guidance.
The company guided that FY27 total net sales could be $5.564 billion to $5.723 billion, adjusted operating profit (EBITDA) is expected to be between $1.536 billion and $1.625 billion and free cash flow is expected to be at least $500 million.
What do the experts like about James Hardie shares?
WAM also said that the announcement of the divestment of the European operations during August allows the company to "sharpen its focus on its core growth markets while further deleveraging its balance sheet."
The fund manager said that James Hardie Industries remains a core holding in the WAM Leaders investment portfolio, with the ASX 200 blue-chip share continuing to deliver above market growth through strong execution of cost and commercial synergies and ongoing market share gains, despite a subdued US housing market.
James Hardie shares could be one to watch, along with other potential opportunities.
