Update shared on 06 Nov 2025
Fair value Decreased 0.40%Mohawk Industries' analyst price target has seen a slight decrease from $139.06 to $138.50, as analysts moderate profit margin and revenue growth expectations after a thorough sector review.
Analyst Commentary
Following the recent sector review, analyst opinions on Mohawk Industries offer insight into both upside opportunities and potential risks faced by the company. The discussion below summarizes prevailing bullish and bearish views based on recent Street Research coverage.
Bullish Takeaways
- Bullish analysts highlight Mohawk Industries' initiation with a Buy rating and a price target above the current consensus. This reflects confidence in the company’s long-term market positioning and prospects.
- Positive sentiment is driven by Mohawk’s ability to benefit from its global scale, product innovation, and operational efficiencies. These factors are expected to support margin resilience.
- Supportive outlooks center on the company's durable business model and potential for above-average growth if macroeconomic conditions stabilize and demand recovers.
- Valuation remains attractive compared to peers. Some analysts indicate that current share prices may not fully reflect the company’s earnings power and strategic initiatives.
Bearish Takeaways
- Bearish analysts are cautious about moderating profit margins amid persistent inflationary pressures and more conservative revenue growth forecasts.
- Concerns persist regarding the company’s exposure to cyclical markets. A slowdown in housing and construction could limit near-term performance.
- Tight competition and evolving consumer preferences may also challenge Mohawk’s ability to achieve targeted growth rates, prompting a measured view on valuation upside.
What's in the News
- Mohawk Industries issued new earnings guidance for the fourth quarter of 2025, expecting EPS between $1.90 and $2. This outlook factors in one additional shipping day and excludes any restructuring or one-time charges (Key Developments).
- The company completed a share repurchase of 315,000 shares, representing 0.51% of shares outstanding, totaling $40.08 million under the buyback plan announced on July 24, 2025 (Key Developments).
- Mohawk Industries also finalized repurchasing 3,805,007 shares, representing 5.91% of shares outstanding, for a total of $496.37 million under the February 10, 2022 buyback program (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has declined marginally from $139.06 to $138.50.
- Discount Rate has risen slightly from 9.07% to 9.14%.
- Revenue Growth expectations have decreased from 2.52% to 2.38%.
- Net Profit Margin forecasts have edged down from 7.19% to 7.04%.
- Future P/E Ratio is virtually unchanged, moving from 12.86x to 12.88x.
Disclaimer
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