On Friday, analysts at Bank of America initiated bullish coverage on appliance manufacturer Whirlpool Corporation (WHR) as the company is well positioned to capitalize on the recovery of US appliance market.
The analyst rate WHR as a “Buy” with a price target of $140, which suggests a 21% upside to Thursday’s closing price of $116.08.
A Bank of America analyst said, “As the leading global appliance manufacturer and #1 in the US with a 40-45% market share, we think Whirlpool (WHR) is well positioned to capitalize on the recovery of the US appliance market. FCF is strengthening as EBITDA grows and non-operating drags decline, underpinning a possible acceleration in capital return. Moreover, we expect WHR to well exceed its 8% EBIT margin target given that North America is operating at peak profitability on volumes that are down by ~25% from the peak. Our PO of $140 represents 14x 2013E P/E.”
Whirlpool shares were up $2.45, or +2.11%, during Friday morning trading. The stock is up +61.37% over the past twelve months.
The Bottom Line
Shares of Whirlpool Corporation (WHR) have a dividend yield of 1.72% based on last night’s closing price of $116.08 and the company’s annualized dividend payout of $2.00 per share.
Whirlpool Corporation (WHR) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.