Mohawk Industries price target raised to $140 from $108 at RBC Capital

RBC Capital analyst Mike Dahl raised the firm’s price target on Mohawk Industries to $140 from $108 and keeps a Sector Perform rating on the shares. The company reported a strong Q2 beat and Q3 guide that continues to embed similar sales declines but with a now higher margin backdrop for the second half of the year, supported by increased restructuring, the analyst tells investors in a research note. RBC warns however that the magnitude of the Mohawk rally and multiple re-rate outpaces both the company’s near-term and structural earnings power.