Whirlpool slips after JPMorgan pulls bull rating

Scott Olson/Getty Images News

JPMorgan downgraded Whirlpool Corporation (NYSE:WHR) to a Neutral rating on Tuesday after having the consumer products stock set at Overweight.

While the firm still views the stock as inexpensive at only roughly 5.2X the 2023 EBITDA estimate, analyst Michael Rehaut and team believe that investor concerns regarding the sustainability of North American margins will continue to impact valuation, which may increase over the next 6 to 12 months amid a potentially more promotional and competitive backdrop

The outlook for Whirlpool (WHR) reflects recent investor concerns and headwinds that have led to more constrained valuations for the stock and expectation that the broader sector will remain in place over the near to medium term.

"Specifically, these concerns and headwinds include the sustainability of demand and the companies’ recently elevated earnings, several companies’ European exposure, continued cost inflation, and the higher interest rate backdrop and a potentially slowing U.S. macroeconomy."

JPMorgan's new December 2023 price target on Whirlpool (WHR) is $137, which works out to roughly 5.5X the 2024 EV/EBITDA estimate and represents a return to roughly in-line with the sector average.

Shares of Whirlpool (WHR) fell 1.45% in early trading on Tuesday and are off 40.90% for the year.

Comments

[OverTheHorizon]

Will continue to fall with housing and diy slump as consumers defer major purchases:
www.advisorperspectives.com/...

[benet1800]

@OverTheHorizon until it doesn’t, and then those who bought in the 130s or low 40s will be in the money big . That said, I trimmed in upper 40s but held on to a portion. Will load up sooner or later. Watching my indicators .