Mohawk Upgraded to Outperform
New York, Jan 2--Analysts at Morgan Keegan upgrade Mohawk Industries, Inc. from "market perform" to "outperform."
Shares of Mohawk Industries, a leading floor coverings manufacturer in the US, are currently trading at $70.54.
According to Morgan Keegan’s research note published this morning, Mohawk Industries is well positioned to benefit from the improved replacement spending trends in the floor coverings market this year. The analysts mention that the residential floorings market experienced a significant upturn in replacement purchases in 2H03. However, the sluggish consumer spending trends and the weak labour market scenario adversely impacted the replacement demand in 2003, Morgan Keegan says.
The analysts expect Mohawk Industries to benefit considerably from the improved macroeconomic trends and a potential upturn in the hard floorings market this year. Morgan Keegan anticipates additional near-term revenue growth opportunities for the company's commercial division, boosted by its recent acquisition of Lees Carpet. The current valuation of Mohawk Industries’ stock is attractive, the analysts believe.
The EPS estimates for 2003 and 2004 are $4.50 and $5.12, respectively. The P/E estimates for 2003 and 2004 are 15.7x and 13.8x, respectively.
Related Topics:Mohawk Industries, Coverings
