Citi has increased their earnings estimate and elevated the price target for Australia’s James Hardie Industries (ASX:JHX) to A$55.10 per share, up from A$42.50 per share.

The shares of the world’s largest fibre cement producer surged as much as 16.4% on Tuesday.

James Hardie (ASX:JHX) stated that it anticipates an adjusted net income between $170 million and $190 million for Q2, exceeding the Factset estimate of $166 million.

Citi adjusted its projections for the company’s earnings before interest and tax (EBIT), predicting a 16% to 20% increase across fiscal years 24 to 26.

The brokerage identified strong reasons for James Hardie’s (ASX:JHX) continued outperformance as they anticipate market competition to ease off and assigned a ‘buy’ rating.

Out of 15 analysts, 11 rate the stock ‘buy’ or higher, three rate it ‘hold’, and one rates it ‘sell’, with a median price target of A$48.00.

The company’s stocks have risen 76.6% this year, as of the last closing price.

James Hardie Industries (ASX:JHX) is the world’s largest producer of fibre cement products.