Wells Fargo analyst Truman Patterson downgraded Mohawk Industries to Underperform from Market Perform and lowered his price target for the shares to $115 from $135. The flooring industry's competition is intensifying as the demand outlook deteriorates, while Mohawk's valuation "remains elevated," Patterson tells investors in a research note. The analyst believes industry market conditions and Mohawk's second half of 2019 fundamentals "have become even hazier," despite lapping "already depressed" 2018 operational performance. It appears the U.S. story has taken a step back, again, as excess inventory and excess industry capacity likely implies further promotional activity and price concessions, says Patterson.