UPDATE: Credit Suisse Starts Mohawk Industries (MHK) at Neutral

Credit Suisse analyst Daniel Oppenheim initiates coverage on Mohawk Industries (NYSE: MHK) with a Neutral rating and a price target of $140.00.

The analyst comments "Ongoing Growth, but Greater Uncertainty in Global Markets: We expect MHK’s U.S. flooring business (55% of 2021 sales) to benefit from increasing repair and remodeling, and we expect sales to grow based on the appeal of MHK’s offerings of ceramic, carpet, luxury vinyl tile (LVT), and wood. We expect more challenging conditions in Europe (28% of 2021 sales) and Russia (4% of sales) in its ceramic and LVT businesses. Cost Challenges from Energy, Particularly Gas, in Europe: Higher energy costs have affected both distribution and inputs for its flooring products. MHK has succeeded in raising prices to offset costs (on a lagged basis); however, we believe this will become more difficult with the increases in energy costs in 2022. Committed Share Buyback and Sound Capital Allocation: We expect MHK to continue using its strong cash flow and healthy balance sheet to repurchase stock, with an additional $500 million repurchase authorized in February 2022."

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 $126.30 yesterday.

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