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KeyBanc Raises Price Target on Whirlpool Corp. (WHR) to Reflect Margin Growth

February 3, 2012 9:33 AM EST
WHR Hot Sheet
Rating Summary:
    1 Buy, 1 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 11 | New: 38
KeyBanc is reiterating its Buy rating on shares of Whirlpool Corporation (NYSE: WHR), while raising its price target from $68 to $78.

The firm notes the price target increase reflects management's forecast of 2.5 percent growth in margins on flat sales growth. KeyBanc also states the margin growth will be driven by approximately 2 percent net positive price, 1 percent restructuring, roughly 0.5-1.0 percent productivity against and an approximately 1.0 percent headwind.

An analyst at KeyBanc comments, "WHR remains a show me story, and skeptics' concerns related to cashflow and competitive pricing remain valid; however, we think nascent price success supports our view the U.S. appliance market will deliver higher margins, ending the 'Discount Decade'."

The firm is raising its FY12 and FY13 EPS estimate from $5.10 and $ 7.12 to $6.50 and $7.41.

For an analyst ratings summary and ratings history on Whirlpool Corporation click here. For more ratings news on Whirlpool Corporation click here.

Shares of Whirlpool Corporation closed at $64.36 yesterday, with a 52 week range of $45.22-$92.00.


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