Why This Whirlpool Analyst Is Turning Bullish

Shares of Whirlpool Corporation WHR recovered sharply in early trading on Tuesday, after being hammered through March.

While Whirlpool’s near-term performance could remain choppy, the current stock valuation provides “an attractive entry point,” according to Goldman Sachs.

The Whirlpool Analyst: Susan Maklar upgraded the rating for Whirlpool from Neutral to Buy, while keeping the price target unchanged at $160.

The Whirlpool Thesis: The company has undertaken several initiatives over the past six months, with the aim of boosting its longer-term revenue, margin, cash flow, and return targets, Maklar said in the upgrade note.

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“More recently, our channel checks indicate a stabilization in the promotional cadence in North America through March, supporting industry pricing as commodities remain volatile, driving profitability ahead of 2019,” the analyst wrote.

The stock valuation already reflects Whirlpool’s low near-term visibility and execution risks, she added.

“Lastly, we highlight the industry’s defensive nature relative to other building product categories with 50+% of demand driven by replacement, partially mitigating the impact of a challenging macro backdrop,” Maklar further stated.

WHR Price Action: Shares of Whirlpool were up 3.12% to $133.11 at the time of publication Tuesday.

Photo: Courtesy Whirlpool