Whirlpool sees performance in line with JPMorgan’s expectations By

© Reuters. Whirlpool (WHR) sees performance in line with JPMorgan’s expectations

By Sam Boughedda

Whirlpool (NYSE:) was downgraded to Neutral from Overweight by JPMorgan on Tuesday, with a price target down to $137 from $145 a share.

JPMorgan analysts told investors in a note that they expect WHR to perform in line with expectations, favoring a Neutral rating.

“While we continue to view the stock as cheap, currently trading at around 5.2x our 2023 EBITDA, we believe investor concerns are about yield sustainability. North American returns will continue to impact valuation, possibly increasing over the next 6-12 months amid more advertising and competition potential, while ultimately we point to increased leverage of the company after it acquired InSinkerator, now at 2.8x net debt/EBITDA in 2022 compared to our global average of 1.9x,” the analysts said.

They also said the reclassification reflects the company’s outlook on recent investor concerns and impediments, including the sustainability of demand and the company’s recently increased earnings, ability to some companies’ exposure to Europe, continued cost inflation and a backdrop of higher interest rates and a potential slowdown. US macroeconomics.

“Thus, since our newly adjusted December 2023 price target of $137, currently based on a target EV/EBITDA of about 5.5x our 2024E EBITDA, exhibiting return potential close to our global average, we expect WHR to perform in line with peers, thereby supporting our Neutral rating,” the analysts said. conclusion analysis.

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