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CFRA upgraded its rating on Whirlpool (New York Stock Exchange: WHR) to buy on hold on Friday.
Analyst Kenneth Leon and his team believe WHR shares are attractive as the US market leader, despite weak overall demand for home appliances.
WHR shares are noted to offer a dividend yield of 5.3% which is considered safe with the company guiding $800 million in free cash flow in 2023.
“The company’s announced divestment from the EMEA segment is expected to lead to a free cash flow boost of approximately $350 million in 2024.”
CFRA lowered its 2023 EPS estimate by $0.50 to $16.50 and kept 2024 EPS at $17.70. Those actions led to the CFRA price target on Whirlpool being cut to $165 at a forward P/E of 10.0X the 2023 earnings estimate and a risk premium narrower to the 10-year historical average at 10.5X.
Whirlpool (WHR) shares posted a small gain of 0.13% in early trading on Friday.
Read why Seeking Alpha contributor Pearl Gray Equity and Research rates Whirlpool a Strong Buy.
