Whirlpool (NYSE:WHR) shares swirled nearly 20% higher in the premarket session today amid chatter of a potential takeover of the appliance maker by Germany’s Bosch.
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The Takeover Chatter
The Robert Bosch Group, commonly called Bosch, is a German engineering powerhouse. According to Reuters, the company is considering a bid for Whirlpool. The move could potentially boost Bosch’s position in the household appliance sector. It is currently the largest automotive supplier globally.
While Bosch has been in discussions with potential advisers for the move, a final offer may or may not materialize. The speculation of a takeover of Whirlpool comes amid Whirlpool’s restructuring efforts. Last year, the company exited the Middle East and Africa markets. It also lowered its exposure to Europe as it focused on higher-margin operations.
Whirlpool is largely known for larger appliances such as washing machines and refrigerators. However, it has been focusing on smaller appliances in recent years in its hunt for growth. Earlier this year, Whirlpool slashed nearly 1,000 positions in a bid to cut costs. Not surprisingly, the company’s share price has tanked by nearly 53% over the past three years.
What Is the Price Target for WHR Stock?
Overall, the Street has a Hold consensus rating on Whirlpool, alongside an average WHR price target of $101. However, investors have already pushed the company’s share price above this mark today. Moreover, a short interest of nearly 13.4% means the euphoria could potentially translate into a short-covering rally in WHR stock this week.
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