Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Stifel initiated coverage on Whirlpool Corporation (NYSE:WHR) Wednesday with a Hold rating and a price target of $80.00. The stock, currently trading at $77.09, sits near its 52-week low of $73.72, with InvestingPro analysis indicating the stock is currently overvalued.
The research firm cited challenges in the U.S. major domestic appliance market and concerns about new tariff regimes as key factors in its assessment. Stifel noted that these issues are weighing on sentiment before Whirlpool can realize competitive advantages from its domestic manufacturing footprint. The company’s recent performance reflects these challenges, with revenue declining 16.06% in the last twelve months.
Stifel’s analysis suggests Whirlpool faces lower smart product adoption compared to competitors and weaker demographics contributing to market share losses. The firm believes these factors necessitate continued investment to sustainably improve the company’s trajectory.
Despite these challenges, Stifel identified emerging support levels, including a compelling dividend following a recent reduction. The firm outlined stronger cash flow coverage supporting the dividend and fostering an improved leverage profile.
Stifel’s sum-of-the-parts analysis suggests modest upside potential from current levels, with particular recognition of Whirlpool’s Small Domestic Appliance business, which the firm described as having "unmatched strength" and continued momentum.
In other recent news, Whirlpool Corporation has declared a quarterly dividend of $0.90 per share, with payment scheduled for September 15, 2025. The board of directors announced this decision, indicating the company’s ongoing commitment to returning value to its shareholders. Additionally, Mary Ellen Adcock, an executive from The Kroger Co., has joined Whirlpool’s board of directors, bringing extensive retail operations experience to the company. In terms of financial outlook, S&P Global Ratings has revised its outlook on Whirlpool to negative from stable, citing expectations of continued weak profitability and elevated leverage through 2025.
Loop Capital has initiated coverage of Whirlpool with a Hold rating, expressing concerns about demand and mix headwinds. Meanwhile, RBC Capital has lowered its price target for Whirlpool to $63, maintaining an Underperform rating due to ongoing weaknesses in core operations and free cash flow. RBC also adjusted its fiscal year 2025 and 2026 EBITDA estimates downward by 6% and 8%, respectively. These developments highlight the challenges Whirlpool faces amid shifting market conditions and financial forecasts.
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