As previously reported, Wells Fargo analyst Truman Patterson downgraded Mohawk to Underperform from Market Perform with a price target of $110, down from $115. The analyst notes that his industry contacts suggest underlying North America Q3 trends deteriorated further from Q2's challenging environment, as the company and the industry attempt to clear a glut of inventory built ahead of China tariffs/duties and former carpet price hikes, which is causing continued production curtailments and margin pressures. Further, given the economic deterioration in Europe and Australia, coupled with European governments fixing energy costs, he believes there is likely downside risk to Q3 revenue and margin estimates.