UPDATE: Credit Suisse Starts Whirlpool Corporation (WHR) at Neutral

Credit Suisse analyst Daniel Oppenheim initiates coverage on Whirlpool Corporation (NYSE: WHR) with a Neutral rating and a price target of $180.00.

The analyst comments "Solid U.S. Fundamentals and Replacement Cycle: We expect WHR to continue to benefit from the strong demand for kitchen and laundry appliances in the US, tied to the favorable housing market, with the US representing nearly 60% of WHR’s revenue. The key driver of demand for WHR’s appliances is replacement (60% of sales), and we believe the appliances sold in the early 2010s will soon be replaced. While rising mortgage rates will likely crimp existing home sales in 2022, we believe that the strong recent turnover and healthy home price appreciation will drive discretionary demand for appliances. Higher-than-Anticipated Inflationary Pressure and International Operations May Affect Profitability: WHR management has noted its expectation of $1.0-1.25 billion of material inflation, primarily from steel and resins, with these higher costs expected to represent 5% of revenue. WHR has historically been able to offset higher raw materials inflationary pressure with price increases, but this may be more difficult with the further inflationary pressure. In addition, we see risk from WHR’s Russian operations, where it has 2,500 employees and $500 million of revenue (approximately 36% of WHR’s EMEA sales)."

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 $175.09 yesterday.

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