Mohawk Industries (MHK) PT Lowered to $180 at Loop Capital

Loop Capital analyst Laura Champine lowered the price target on Mohawk Industries (NYSE: MHK) to $180.00 (from $185.00) while maintaining a Buy rating.

The analyst commented: "We are maintaining our Buy rating and trimming our price target on shares of MHK from $185 to $180 following a mixed report from our checks and a pre-quiet period conversation with management. We see price/mix remaining negative for the next few quarters. Mohawk has characterized industry demand as "at the bottom of this cycle," and sales are still weak. Capacity utilization is running in the 75-80% range, and volume growth would be the most significant lever for earnings. That said, the company's productivity improvement efforts are material and ongoing. Our 2024 sales estimate is unchanged at -4% YoY. Our 2024 adjusted EPS estimate is two cents above consensus. We view the valuation of 14x 2025E adjusted EPS and 7x EV/EBITDA as attractive even with shares up 30% YTD outperforming the market, as we think these are low multiples for trough earnings levels."

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