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Investing.com - BofA Securities raised its price target on Mohawk Industries (NYSE:MHK) to $140 from $138 while maintaining a Buy rating on the stock ahead of the company’s third-quarter earnings report. The $7.9 billion market cap company maintains a "GOOD" financial health rating according to InvestingPro analysis.
The firm cited Mohawk’s attractive valuation, noting an 8.9% free cash flow yield and 6.1x 2026 estimated EV/EBITDA, with the stock trading below its historical discount to building product peers. Current metrics support this view, with a P/B ratio of 0.95 and EV/EBITDA of 7.38. InvestingPro analysis shows the company operates with moderate debt levels and maintains sufficient cash flows to cover interest payments.
BofA Securities increased its 2026 earnings per share estimate by 2% to reflect an improved price-cost outlook, driven by better pricing following recent competitor price announcements, a more favorable input cost backdrop, and share gains versus competitors.
Mohawk is scheduled to report its third-quarter 2025 earnings on Thursday, October 23 after market close, with a conference call planned for Friday at 11:00 AM ET.
The research firm expects Mohawk’s third-quarter earnings and fourth-quarter guidance to be roughly in line with consensus estimates.
In other recent news, Mohawk Industries announced its Q2 2025 earnings, reporting net sales of 2.8 billion dollars, which remained steady compared to the same period last year. The company’s adjusted earnings per share stood at 2.77 dollars, showcasing resilience in a challenging market environment. Mohawk Industries also generated 125 million dollars in free cash flow, highlighting a robust financial position. These developments come amid a backdrop of steady market conditions. While the company maintained its sales figures, it did not experience significant growth, reflecting the broader economic challenges. Analyst firms have yet to provide any new upgrades or downgrades following these earnings results. Investors and market observers continue to watch for further updates on Mohawk Industries’ strategic moves.
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