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Fly News Breaks for May 16, 2019
May 16, 2019 | 04:57 EDT
Stifel analyst John Baugh last night upgraded Mohawk Industries to Buy from Hold and raised his price target for the shares to $180 from $135. The recent volatility in the shares has created a nice entry point, Baugh tells investors in a research note. The stock has discounted the possibility of further downward earnings revisions while the company's margins have bottomed and should improve sequentially through 2019, adds the analyst. He sees limited downside risk from current share levels.
News For MHK From the Last 2 Days
Jun 14, 2019 | 09:36 EDT
Loop Capital analyst Laura Champine raised her price target on Mohawk to $145, saying domestic manufacturing may benefit in the short run amid greater uncertainty around the global trade environment. The analyst also believes that the company's margins will recover in 2020 and beyond following a "precipitous EBIT decline" in 2017 as sales increase. Champine is keeping her Hold rating on Mohawk however due to concerns around the housing cycle, since Mohawk primarily serves the residendial remodeling market and home price growth has slowed to its "weakest pace in seven years", according to Case-Shiller March data.