Mohawk Industries upgraded to Strong Buy from Market Perform at Raymond James

Raymond James upgraded Mohawk Industries to Strong Buy from Market Perform with a $140 price target. The shares are now below a “floor” valuation, the analyst tells investors in a research note. The firm says continued expectations for “comfortable” profitability, positive free cash flow, limited net debt and current maturities, and the implications for the industry’s restrained material new capacity adds, it imagines the company’s appraised asset value should continue to act as support, thus presenting “material favorable asymmetry.” Mohawk shares are now below Raymond James’ theoretical estimate of net asset replacement, contends the analyst.