Whirlpool Soars In Big Win For Appliance Sector

Whirlpool's (WHR) stock price took a positive spin recently, with a 19% rise due to acquisition rumors. German industrial conglomerate Robert Bosch is reportedly considering a bid for the home appliance giant. The company has been under pressure from foreign competitors and has been restructuring its operations, including divesting from its African and Middle Eastern markets. To manage its business in Europe, the firm formed a joint venture. This was done to preserve its capital to better compete with markets at home. Robert Bosch sees a possible Whirlpool acquisition as a way to fortify its appliance division. The technology and services supplier has four business sectors—industrial technology, automotive, energy and building technology, and consumer goods.  

What's New At Whirlpool

With 113 years of history, the company’s innovation started early, introducing the automatic washing machine in 1948 and the self-defrost fridge in 1954. Fast forward 70 years, Whirlpool introduced Whirlpool® Smart Appliances, its line of smartphone-controlled kitchen and laundry appliances, in 2013, and has spearheaded initiatives in renewable energy for net zero emissions by 2030. With the aim of becoming a high-margin, high-growth company, Whirlpool recently announced a shift to a decentralized business model with a streamlined corporate center and autonomous business units. The company is working toward streamlining production and building a resilient and competitive supply chain amid global volatility. It is also diversifying through mergers and acquisitions and has a plan to leverage AI and IoT (Internet of Things).

What The Industry Says

Wall Street analysts, including JP Morgan Securities, RBC Capital, Goldman Sachs, Raymond James, and Zacks Research, give Whirlpool a buy rating. Some analysts believe that Whirlpool Corporation may be undervalued. The consensus 12-month price target for the stock is $101,75, with a high forecast of $135. After pulling back slightly from its $101.91 high earlier in the week, the stock rallied again today and then slipped. WHR is now trading around $102.

Neither Lisa Fritscher nor Stocks.News have positions in these companies.