JPMorgan analysts believe Whirlpool's decline in light of Sears' announcement that it will be selling its full line of Kenmore appliances on Amazon is "overdone."
Shares of Whirlpool posted a sharp decline of 4 percent on Thursday after Sears declared plans on Thursday to sell Kenmore-branded appliances on Amazon.com.
After the opening bell, Whirlpool traded slightly higher, up 0.12 percent.
"If Amazon eventually becomes a more significant retailer of major appliances, Whirlpool will be there," wrote JPMorgan analyst Michael Rehaut in Thursday's note. "Whirlpool has proven its ability to adapt to a changing retail landscape over the past decade."
The analysts view Whirlpool with less angst than markets, noting both Sears' and Kenmore's recent declines in market share. Sears' share of the appliance market is roughly 20 percent, according to the report, down from 40 percent in the early 2000s.
"More specifically, Kenmore represents 40-50% of Sears' appliance sales — hence roughly 10% of the overall appliance industry — and has also been losing market share at a similar rate," added Rehaut.
Sears, which has seen its shares fall about 40 percent over the past year, saw its stock jump 10 throughout trading on Thursday. Its Kenmore-branded appliances will be compatible with Amazon's Alexa platform.
"Given Whirlpool's leading market share of roughly 40% across the industry as well as across all major retailers and distribution channels … we believe that, as the company has adapted to the changing retail landscape over the past decade, it will continue to do so going forward," said Rehaut.