Whirlpool: Is there more upside to WHR shares?


YTD WHR shares up 108% vs. the 57% gain in S&P 500 Household Durables Index (all data based on Friday Nov 16 closing prices).

NEGATIVES

  • Fiscal Cliff

  • European Recession

  • US Economic Malaise

  • FX

  • Asian Demand Remains Muted

POSITIVES

  • US Housing Rebound

  • LA Growth Opportunities

  • ‘Kitchen Sprawl’ Trend

  • Significant Gross Margin Opportunity

Rationalized business model positioned to generate improved profit margins with increased demand; expected $200M benefit in 2012 and 2013. Management guidance (10/23) Raised to $6.90 – $7.10 EPS and FCF of $125M – $175M; 5.5%-6% EBIT margin, up 300bps with a medium term opportunity to 8% (compared to the 10.9% EBIT median peer EBIT margin) along with 5%-7% revenue growth and 10%-15% EPS growth.

See my write up in Value Retail News here.

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