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Mohawk Industries Earns an Upgrade at Deutsche Bank
Feb 12, 2024 1:15 PM - Davit Kirakosyan
Image credit: FMP
Mohawk Industries (NYSE:MHK) shares rose nearly 2% pre-market today after Deutsche Bank analysts upgraded the company to Buy from Hold, increasing their price target significantly to $152 from $98, following the company’s reported Q4 earnings last week.
The analysts’ commentary highlighted that the firm's 2024 outlook report from December had pointed to the first quarter of 2024 as a potential pivotal moment for Mohawk Industries, especially if there was a significant improvement in visibility. Given the company's confirmation that demand is expected to pick up in the second half of 2024, coupled with new details on profit growth drivers, the analysts now see a more favorable risk-reward scenario warranting a Buy rating.
Additionally, the company's outlook for neutral price-cost dynamics, positive volume and leverage, and the possibility of more efficient production rates lead the analysts to anticipate double-digit EPS growth in fiscal years 2025 and 2026, following a stabilization of earnings in 2024.
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