UPDATE: Credit Suisse Upgrades Mohawk Industries (MHK) to Neutral
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Credit Suisse analyst Adam Baumgarten upgraded Mohawk Industries (NYSE: MHK) from Underperform to Neutral with a price target of $180.00 (from $114.00).
The analyst comments "We are upgrading MHK to Neutral from Underperform and increasing our TP to $180 from $114 on the back of a ~33% increase in our FY21/FY22 adj. EPS estimates, as well as our bullish outlook for US housing growth in 2021/2022. Our bullish view is based on: 1) positive YTD channel checks: YoY growth has accelerated sequentially in Dec, Jan, Feb and pricing power is improving – see report body for more detail; 2) an outlook for robust existing home sales/prices: we expect turnover and prices to increase ~15% and ~10%, respectively, in 2021; 3) strong delivery growth for the homebuilders: +20-30% in 2021; and 4) accelerating trends seen in our proprietary CS Real Estate Agent Survey: mid- and high-tier home buyer traffic/prices have picked-up in Dec/Jan, a positive for remodel demand."
Shares of Mohawk Industries closed at $168.45 yesterday.
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