Trends: Northcoast Research Call Winnebago, Thor Industries Dealer Inventories ‘Unsustainable’
Iconic RV firms Winnebago and Thor Industries fell in heavy volume Friday, extending recent losses as an analyst raised concerns over dealer inventories.
Northcoast Research lowered both stocks to a neutral rating from buy due to concerns that dealer inventory is at an “unsustainable level” for 2018.
This story by Michael Larkin originally appeared in Investors Business Daily.
Winnebago fell 8.4 percent to 44.88 on the stock market today. On Thursday, shares fell more than 8 percent, losing sight of their 50-day moving average. Thor Industries went down by 7.7 percent to 139.81, joining Winnebago below its 50-day line.
Patrick Industries and LCI Industries were down 8.1 percent and 7.6 percent respectively. Patrick Industries fell slightly below its 50-day line.
Northcoast Research is more comfortable with Camping World, and initiates the stock with a buy rating and 56 price target.
Camping World fell by 1.35 percent at 45.18, closing above its 50-day line as it works on a flat-base consolidation.
Last month Winnebago reported fiscal first-quarter results that topped forecasts and predicted a ninth straight year of growth for the industry. Earnings per share fell 17 percent to 50 cents. Revenue spiked 52 percent to $373 million.
