UPDATE: Stifel Nicolaus Raises PT to $104 on Mohawk Industries Following Completion of Acquisition
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
|Oct 2015||Goldman Sachs||Initiates Coverage on||Buy|
|Aug 2015||Stifel Nicolaus||Maintains||Buy|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.