By Sam Boughedda
Shares of Whirlpool (NYSE:WHR) have been downgraded to Underperform from Neutral, with its price target cut to $119 from $155 per share by BofA analysts.
The analysts described appliance demand as "washed out."
"We downgrade Whirlpool (WHR) to Underperform from Neutral as industry and company data suggests a severe drop in appliance demand and softening of pricing, while costs remain elevated, pressuring margins," wrote the analysts.
The analysts went on to explain that according to the Association of Home Appliance Manufacturers (AHAM), monthly U.S. major appliance volume growth has moderated rapidly from 86.6 million units in 2021 to a YTD run rate of 80.4mn units in 2022.
"If 4Q appliance volumes decline at the 3Q pace of -13% YoY (-9% YoY for T-6), full-year 2022 appliance volumes could be down 9% YoY (-7% YoY for T-6). We view the risk as more skewed to the downside that demand weakens further given rising rates, persistent inflationary pressure on the consumer, and a material slowdown in housing," added the analysts.