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

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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

DateFirmActionFromTo
Jun 2017Credit SuisseInitiates Coverage OnOutperform
Apr 2017NomuraInitiates Coverage OnBuy
Jan 2017BarclaysInitiates Coverage OnOverweightOverweight

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