Stifel Maintains 'Buy' on Mohawk, Lowers Forecast

New York, NY, Feb. 25, 2013 -- Analyst Stifel Nicolaus has a buy rating on shares of Mohawk although Stifel reduced its earnings estimate for 2013.

The reduction, from $5.19 to $5.03 per share, is mostly due to greater interest expense related to financing the Marazzi acquisition as well as raw materials inflation in Mohawk's carpet business.

"If end markets improve as we suspect they will over the next 24 months, and the acquisitions generate improved margins, the earnings leverage could be considerable. We continue to recommend the stock and are adjusting our price target to $115." Stifel said. The stock was trading around $105 on Monday.

Mohawk total sales for the fourth quarter were up 0.3% to $725.9 million, Daltile was up 15.2% to $401.6 million, and Unlin increased 1.1% to $323.0 million.


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