Whirlpool’s consensus price target has been revised downward to $100.50 as analysts weigh near-term policy uncertainty around tariffs and appliance inclusion, balanced by potential medium-term margin and price recovery, but remain mindful of the mixed historical impact of similar trade actions.
Analyst Commentary
- Bullish analysts believe Whirlpool shares are currently oversold, presenting an attractive entry point ahead of anticipated catalysts.
- An expected tariff-induced price and margin recovery is predicted to become evident in H2 2025 and continue into 2026, potentially boosting earnings.
- Recent increases in Section 232 tariffs on steel and aluminum to 50% may help Whirlpool by raising competitors' costs, though final policy outcomes remain uncertain.
- Inclusion or exclusion of major appliance categories in tariff lists remains in flux, introducing near-term policy uncertainty but also the possibility of incremental benefit if more appliance products are covered.
- Historical experience with similar trade policy actions in the prior Trump administration showed a mixed impact, raising caution around policy-driven benefits.
What's in the News
- Whirlpool Corporation is seeking to sell a 31% controlling stake in Whirlpool of India, aiming to raise $550 million–$600 million, while retaining a 20% interest; this is part of a global reorganisation following a $1.5 billion loss.
- EQT AB and Bain Capital are leading contenders for the India stake, with TPG, KKR, Reliance, and Havells having shown interest but some withdrawing due to high valuations and concerns over future royalty payouts.
- The stake sale process, advised by Goldman Sachs, began in April and is expected to trigger an open offer for a further 26% stake, possibly enabling the buyer to obtain a 57% holding.
- Whirlpool launched Spin&Load Rack, a 360-degree spinning lower dishwasher rack designed for accessibility and inclusivity, fitting all 24" dishwashers manufactured after 2018 across its brands.
Valuation Changes
Summary of Valuation Changes for Whirlpool
- The Consensus Analyst Price Target has fallen slightly from $102.75 to $100.50.
- The Consensus Revenue Growth forecasts for Whirlpool has fallen from 3.3% per annum to 3.1% per annum.
- The Net Profit Margin for Whirlpool has fallen slightly from 4.81% to 4.61%.
Disclaimer
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