How Credit Suisse Views Mohawk Industries



Credit Suisse’s view on Mohawk Industries

In its recent report, Credit Suisse (CS) included Mohawk Industries (MHK) among its top stock picks. The investment firm expects that Mohawk Industries could provide strong returns going forward.

Mohawk Industries manufactures and sells flooring and construction products for residential and commercial purposes. It has a strong position in the home furnishings space and operates on a worldwide basis. The company is expanding its business by introducing a variety of new products, which could be an important growth driver for the company.

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Credit Suisse wrote, “We continue to believe Mohawk is among the best positioned within our coverage given its: (1) aggressive expansion in to faster-growing product categories, (2) ongoing success in its global consolidation efforts, and (3) continuous improvements in its legacy operations and the ability to drive synergies from acquisitions.”

Mohawk Industries’ performance

On October 19, 2017, Mohawk Industries (MHK) traded at $261.00. Its 52-week high is $262.30 and its 52-week low is $175.52. On a year-to-date basis, MHK returned nearly 27.7% through October 19, 2017. The broader market S&P 500 Index (SPY) returned nearly 12.5% during the same period. 

MHK stock has returned nearly 32.5% over the last one-year period. The stock is currently trading at a trailing price-to-earnings ratio of ~5.2x. Credit Suisse set a current target price of $274.00 for this stock.

In the next part of this series, we’ll analyze Credit Suisse’s view on Kraft Heinz (KHC).


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