Shares of Mohawk Industries stock got a bit of a bounce Friday after an analyst upgraded her rating on shares in the Calhoun-based carpet and flooring manufacturer.
Cowen & Co. analyst Laura Champine told investors the recent drop in petroleum costs could boost margins for the company, whose shares have fallen 53.78 percent in the last 12 months.
Those two factors, according to Champine, should boost cash flow, leading her to upgrade her Mohawk rating to “outperform” from “neutral.”
Though she wrote demand for its products hasn’t increased — Mohawk lost $1.3 billion, or $20.37 per share in the third quarter — “we believe the company’s solid management team has the aptitude and willingness to adjust the business to the current environment.”
Northwest Georgia, home to Mohawk and other flooring-related companies, has been hit hard by recent job losses, according to the state Labor Department.
Those job cuts came as a result of housing sector’s collapse —and the slowdown in homebuilding — as the nation is mired in recession. What’s more, homeowners, who are worried about their own employment security are reigning their spending on major home improvement projects.
Mohawk shares closed Friday at $34.73 per share, up $1.39 or 4.05
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