Economic Rebound Should Be Good for Carpet

New York, NY, Aug. 10, 2012 -- Analyst Stifel Nicolaus sees the potential for a 25% rebound in carpet sales for Mohawk and the industry in general once the economy turns for good, despite the fact that carpet is slowly losing market share.

While not predicting the timing of a turn, Stifel said such a rebound would still put volumes well below the peaks of 2006-2007.

The analyst also noted, after a meeting with management, that Mohawk "is talking about acquisitions again," now that its balance sheet is healthier.

"We get the impression that management will be somewhat more patient in its pursuit of targets and will not pay similar multiples to those paid for Dal-Tile and Unilin before the Great Recession," Stifel said.


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