KeyBanc Capital Markets Initiates Coverage On Whirlpool Corporation At Buy, $99 PT

KeyBanc Capital Markets is initiating coverage on Whirlpool Corporation WHR, with a Buy rating and $99 price target. KeyBanc thinks WHR's sales mix
of 70% mature0 and 30% developing markets offers sustainable 5% unit growth. KeyBanc expects U.S. margins to rise incrementally as pricing discipline emerges to recover material inflation and stabilizing market share results in less price discounting, reversing the last decade's decline.

KeyBanc expects 5% plus growth from Whirlpool with 30% of sales from Brazil and India offering long-term secular growth in combination with a cyclical consumer recovery in developed regions. KeyBanc expects margin expansion offers far more upside reward than downside risk at this point in the cycle as consumer demand recovers, disruptive pricing actions subside, and cost/design initiatives continue.

Risks that could impede the stock from achieving othe price target include: increased pressure on margins tied to ongoing price pressure in 2011 from Korean and other competitors, rising material costs that cannot be offset, and or a slower consumer recovery in the United States/Europe and or a disruption of high GDP growth in emerging markets.

WHR is trading higher at $