RBC downgraded Mohawk Industries to Underperform from Sector Perform and lowered its price target to $112 from $130, sending the flooring manufacturer's shares down 5.2% in the afternoon session. Analyst Mike Dahl cited weak flooring demand, housing market weakness, and rising cost headwinds, and said he expects the fourth-quarter outlook to disappoint. His fourth-quarter earnings estimate stands at $1.42 a share versus the Street's $1.69, while his 2027 estimate of $8.97 is well below the Street's $10.06. Dahl added that higher oil, diesel, and natural-gas costs will require more pricing, which will be hard to get while flooring demand is weak. The downgrade overshadowed a new Buy rating and $188 target from Melius.
Mohawk Industries IncRBC downgraded Mohawk to Underperform and cut its price target to $112 from $130, citing weak flooring demand and cost headwinds.
