Whirlpool Spins Slower: JPMorgan Slashes Price Target As Tariff Pressures Mount

JPMorgan analyst Michael Rehaut on Sunday reiterated a Neutral rating on the shares of Whirlpool Corp WHR and lowered the price forecast from $109 to $89.

First-quarter sales declined 2% organically, missing expectations, while margins fell short due to North American weakness and increased Asian imports ahead of tariffs.

Latin America sales fell 12%, while Asia posted strong 12% growth, driven by market share gains. Small domestic appliance sales rose 8%, supported by new products and a growing direct-to-consumer presence.

The company posted first-quarter operating margins of 5.9%, improving 160 basis points year-over-year but falling short of the 6.2% estimate. Gains stemmed from positive price/mix and cost efficiencies, partly offset by currency headwinds and increased investments.

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Following its first-quarter earnings call, Whirlpool reaffirmed its 2025 guidance, projecting operating EPS of $10, 3% organic sales growth and 100 basis points of core margin expansion.

The company expects to counter $400 million in tariff pressures mainly through pricing actions, cost cuts, and supply chain adjustments.

Despite ongoing macroeconomic challenges and softening consumer confidence, WHR forecasts 2025 sales of approximately $15.8 billion, driven by new product launches and global strength.

The analyst cut 2025 and 2026 operating EPS estimates to $8.73 and $10.44, respectively, following weaker first-quarter results and updated guidance. The lowered price forecast is based on a reduced EV/EBITDA multiple.

Analyst cited ongoing margin pressures, macroeconomic challenges, tariff risks, and elevated leverage as key concerns for the Neutral rating.

WHR Price Action: Whirlpool shares traded lower by 0.72% at $76.84 at publication Monday.

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