Citigroup has raised its price target for Thor Industries and set a new price target on the company to $42, citing improved retail sales trends during March.
Citigroup’s analyst wrote, “The bear case to THO’s stock is that recent results were driven by dealer inventory load, and that underlying end-user demand would not follow through. The most recently available industry data showed the RV industry (towables and motorhomes) declined about 11 percent in Jan versus down 13 percent in 4Q. However, our recent dealer checks indicate that while February trends remained soft, RV retail sales are seeing very solid improvements during March and early April. … Our checks also suggest that dealer inventory levels remain very low and there still appear to be shortages of products.”
Shares of Thor Industries closed up 3.32 percent, to $33.91, for the day after Citigroup’s rating.