CFRA lifted its rating on Whirlpool (NYSE:WHR) to Buy from Hold on Friday.
Analyst Kenneth Leon and team believe WHR shares are attractive as the U.S. market leader, despite the weak overall demand being seen for appliances.
WHR shares are noted to offer a 5.3% dividend yield that is seen secure with the company guiding $800M in free cash flow in 2023.
“The company’s announced divestment of the EMEA segment is expected to lead to a boost to free cash flow by about $350m in 2024.”
CFRA lowered its 2023 EPS estimate by $0.50 to $16.50 and keep the EPS for 2024 at $17.70. Those actions led to the CFRA price target on Whirlpool being cut to $165 on a forward P/E of 10.0X the 2023 earnings estimate and a narrower risk premium to the 10-year historic average at 10.5X.
Shares of Whirlpool (WHR) poked out a small gain of 0.13% in early trading on Friday.
Read why Seeking Alpha contributor Pearl Gray Equity and Research rates Whirlpool at Strong Buy.