Credit Suisse Reiterates Outperform, Raises Price Target On Mohawk Industries On Margin Gains And Acquisitions

In a report published Monday, Credit Suisse analyst Michael Dahl reiterated an Outperform rating on

, and raised the price target from $180.00 to $200.00. In the report, Credit Suisse noted, "We are tweaking our core estimates slightly lower, as incremental FX headwinds offset margin gains from productivity initiatives and modest accretion from the European ceramic acq. The key for MHK continues to be its strong cash flow and aggressive cost containment, as this helps fuel opportunities for above-average EPS growth as demand improves and FCF continues to be redeployed for accretive acquisitions. Our new EPS ests. are $9.45 for '15 (from $9.47) and $10.62 for '16 (from $10.64). On EBITDA, our ests. increase to $1.37 bln for '15 (from $1.34 bln) and to $1.50 bln for '16 (from $1.46 bln). We are increasing our target price to $200 (from $180) as the better margin profile raises longer term earnings potential." Mohawk Industries closed on Friday at $184.26.