WHR: 4.7% Dividend Yield Will Support Shares Despite Competitive Headwinds

Analysts have modestly raised their price target on Whirlpool to $80 per share, citing emerging technical support levels and an increasingly compelling 4.7% dividend yield, even as the company continues to face headwinds from lower smart product adoption and demographic-driven share losses.

Analyst Commentary

Bullish Takeaways

• Bullish analysts point to the 4.7% dividend yield as an increasingly attractive support to total return, particularly after the recent reset. They argue it places a floor under valuation.
• They view emerging technical support levels as evidence that downside risk may be more limited near the current price, reinforcing an $80 per share fair value framework.
• Some see the ongoing investments in product and brand as a potential catalyst for a gradual improvement in execution and share stability over the medium term.

Bearish Takeaways

• Bearish analysts highlight structurally lower smart product adoption versus peers as a competitive overhang that may cap long term growth and justify only a hold stance.
• They remain concerned that unfavorable demographics and market share losses will require elevated reinvestment, which could pressure margins and limit near term earnings growth.
• The recent dividend reduction is cited as a signal of constrained cash flow flexibility, raising questions about Whirlpool's ability to balance shareholder returns with necessary strategic spending.

What's in the News

• Federal investigators reported no evidence of widespread tariff evasion among appliance importers, countering Whirlpool's earlier claims that rivals were dodging U.S. duties on washers and other appliances (Wall Street Journal).
• Whirlpool previously alerted the Trump administration that competitors might be undervaluing imported appliances to reduce tariff bills, citing sharp price drops in import data for products such as garbage disposals, gas ranges, and washing machines (Wall Street Journal).
• Advent International is in exclusive, advanced talks to acquire a 31% controlling stake in Whirlpool of India. Whirlpool plans to retain about 20%, a deal structure that would trigger an open offer for an additional 26% under Indian takeover rules.
• Whirlpool updated 2025 guidance, projecting roughly flat like for like net sales of about $15.8 billion, GAAP EPS of around $6.00, ongoing EPS of about $7.00, and ongoing EBIT of approximately $800 million.
• The company announced a planned $300 million investment in U.S. laundry manufacturing facilities in Clyde and Marion, Ohio, targeting next generation washer and dryer production and 400 to 600 new direct jobs, with additional support from JobsOhio and state tax incentives.

Valuation Changes

• Fair Value: unchanged at approximately $86.78 per share, indicating no revision to the long term intrinsic value estimate.
• Discount Rate: unchanged at 12.5%, implying the same required return and risk assessment as in the prior model.
• Revenue Growth: effectively flat at about 1.76% annually, with only an immaterial downward adjustment in the updated assumption.
• Net Profit Margin: effectively unchanged at roughly 4.75%, reflecting no meaningful shift in long term profitability expectations.
• Future P/E: stable at about 9.2x, signaling no change in the valuation multiple applied to forward earnings.