BofA upgrades Whirlpool on U.S. tariff advantage over rivals

Investing.com -- Bank of America upgraded Whirlpool Corp (NYSE: WHR) to Neutral from Underperform, saying the U.S. home appliance maker stands to benefit from new import tariffs that could raise costs for foreign rivals.

The U.S. government on Wednesday added home appliances to Section 232 steel tariffs, imposing a 50% duty on the value of steel used in imported goods.

The move, effective June 23, is likely to hit competitors that rely on cheaper foreign supply chains, particularly from China and South Korea.

Whirlpool manufactures 80% of the appliances it sells in the U.S. domestically and sources nearly all of its steel from within the country, giving it a relative cost advantage.

The brokerage raised its price target on the stock to $94 from $68 driven by improved margin outlook in North America and potential share gains if competitors are forced to raise prices.

Whirlpool’s North American business generates around 60% of the company’s total earnings.

BofA estimates that the tariff could lift EBIT margins by as much as 200 basis points and boost profits by 20–30% if rivals pass on the higher costs to consumers.

Whirlpool’s recent debt refinancing and its planned exit from India in the second half of 2025 should help the company manage its balance sheet through a major debt maturity in late 2026.

While long-term free cash flow concerns remain, BofA said near-term competitive pressures appear to be easing. The firm raised its 2025 and 2026 earnings estimates for Whirlpool by 3% and 10%, respectively.

You May Also Be Interested In

• Micron: Deutsche Bank bullish as current levels still offer ’attractive upside’
• Par Pacific Holdings (PARR) PT Raised to $34 at Mizuho
• Teekay Tankers (TNK) PT Lowered to $41 at BofA Securities