Scott Olson
CFRA has raised its rating on Whirlpool (NYSE:WHR) to Buy from Hold on Friday.
Analyst Kenneth Leon and team believe WHR stock is attractive as a US market leader, although overall demand for home appliances remains weak.
WHR stock is credited with a 5.3% dividend yield, which is considered safe with the company aiming for $800 million in free cash flow by 2023.
“The company’s announced divestment from the EMEA segment is expected to result in an additional $350 million in free cash flow by 2024.”
CFRA lowered its 2023 EPS estimate by $0.50 to $16.50 and left the EPS for 2024 unchanged at $17.70. Those actions have resulted in the CFRA price target on Whirlpool being cut to $165 with a forward P/E of 10.0 times the 2023 earnings estimate and a lower risk premium than the historical average. 10 year history is 10.5 times.
Shares of Whirlpool (WHR) poke a small benefit of 0.13% in early trading on Friday.
Read why Looking for an Alpha Pearl Gray Equity and Research Contributor Rate Whirlpool at Strong Buy.
