Bosch Bid Hype Fades, But Analyst Sees Whirlpool's Potential

Whirlpool Corporation WHR shares are trading lower today. The stock pulled back after soaring higher yesterday due to news of Robert Bosch GmbH reportedly considering a bid for the company.

Goldman Sachs analyst Susan Maklari rated the stock as Buy and price target of $118.

The analyst writes that while Robert Bosch holds a 6% share in the global major appliance market, its presence in North America is significantly smaller at 1.5%, while Whirlpool leads with approximately 25% market share in North America and 10% globally based on 2023 volumes.

Maklari says that a potential deal would enable Bosch to enhance its competitive position both globally and regionally.

This development coincides with European companies’ increasing interest in expanding into the US building products industry to mitigate challenges in their local economies, writes the analyst.

However, the analyst expects regulatory hurdles to be anticipated due to current geopolitical dynamics.

The analyst notes that the company’s revenues and adjusted EBITDA decreased by 12% and 46%, respectively, from 2021 to 2023, which weighs on the valuation.

Whirlpool stock has lost over 32% in the last 12 months. Investors can gain exposure to the stock via the iShares Core S&P Mid-Cap ETF IJH and the Schwab US Dividend Equity ETF SCHD.

Price Action: WHR shares are down 1.95% at $99.92 at the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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