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UPDATE: Stifel Nicolaus Raises PT to $104 on Mohawk Industries Following Completion of Acquisition

Related MHK
Carter Worth Is Bullish Mohawk Industries, Allergan And Morgan Stanley
Earnings Scheduled For May 7, 2015

Stifel Nicolaus reiterated its Buy rating on Mohawk Industries (NYSE: MHK) and raised the price target from $100.00 to $104.00.

Stifel Nicolaus noted, "Mohawk announced on Thursday that the company has closed the acquisition of Pergo, a laminate flooring manufacturer whose 2011 revenue was pegged around $320 million. Mohawk paid $150 million in cash for the acquisition, which will be funded with half cash and half under the company's revolver. Implied EBITDA from the original press release is $25 million. We will assume no synergies and a similar rate of profitability for 2013 although we suspect there will be meaningful cost synergies. Our calculations imply EPS accretion this year of $0.17, despite our assumptions of no sales growth or cost synergies in the first year."

Mohawk Industries closed at $94.43 on Thursday.

Latest Ratings for MHK

Jun 2015Cantor FitzgeraldInitiates Coverage onHold
Jun 2015BarclaysMaintainsOverweight
Jun 2015BarclaysMaintainsOverweight

View More Analyst Ratings for MHK
View the Latest Analyst Ratings

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