UPDATE: JPMorgan double Downgrades Mohawk Industries (MHK) to Underweight

March 30, 2022 5:28 AM EDT
Get Alerts MHK Hot Sheet
Price: $117.96 +0.54%

Rating Summary:
    7 Buy, 19 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 15 | Down: 21 | New: 16
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(Updated - March 30, 2022 5:28 AM EDT)

JPMorgan analyst Michael Rehaut downgraded Mohawk Industries (NYSE: MHK) from Overweight to Underweight with a price target of $140.00 (from $206.00).

The analyst comments "We rate MHK Underweight relative to its peers, as we expect several headwinds to continue to constrain its valuation, resulting in minimal upside to the stock and as a result, we anticipate underperformance relative to its peers. Specifically, we point to the company’s above average exposure to geographies vulnerable to economic slowdown due to the current geopolitical crisis, which include Russia, leading our universe at 4% of sales, as well as Europe, at 26% of sales, which is the second highest in our universe. Moreover, we believe the current elevated and still volatile natural gas prices continue to represent downside risk to 2022 Street consensus, currently at $15.00 (JPMe: $13.67). Lastly, we believe our outlook for volume declines continuing in 1H22 following contraction in 2H21 will result in only perpetuating investor concerns regarding the company’s ability to demonstrate growth in this area."

For an analyst ratings summary and ratings history on Mohawk Industries click here. For more ratings news on Mohawk Industries click here.

Shares of Mohawk Industries closed at $138.83 yesterday.

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