Mohawk upgraded to Buy at Loop Capital on ‘exaggerated’ negative sentiment

As previously reported, Loop Capital upgraded Mohawk Industries to Buy from Hold with an unchanged price target of $115. Most investors already expect a recession to pressure sales and earnings this year, but the company’s long-term margin outlook is improving, while the elevated raw materials and logistics costs are expected to revert to historical norm, the analyst tells investors in a research note. Mohawk’s North America Flooring segment’s sales are declining at a pace worse than 2020, but an exaggerated negative sentiment has already pushed shares down 9% year-to-date in an up market.