BMO Capital lowers Winnebago stock price target on weaker outlook

Published 20/06/2025, 12:36
BMO Capital lowers Winnebago stock price target on weaker outlook

Investing.com - BMO Capital reduced its price target on Winnebago Industries (NYSE:WGO) to $50.00 from $60.00 on Friday, while maintaining an Outperform rating on the recreational vehicle manufacturer. The stock has declined over 35% in the past six months, with 11 analysts recently revising their earnings expectations downward, according to InvestingPro data.

The price target reduction follows Winnebago’s preliminary fiscal third-quarter 2025 results, which came in below market expectations according to the research firm.

BMO Capital trimmed its fiscal third-quarter 2025 estimates in line with management commentary and lowered projections for fiscal fourth-quarter 2025 and fiscal 2026 to reflect anticipated softer production levels this summer.

The firm cited "muted dealer ordering stemming from macro uncertainty" as the primary reason for the production slowdown, which is expected to continue until closer to calendar year 2026.

BMO Capital noted that Winnebago’s directional commentary aligns with statements from competitor Thor Industries (NYSE:THO) during its most recent earnings release, suggesting broader industry challenges rather than company-specific issues.

In other recent news, Winnebago Industries announced its preliminary financial results for the third quarter of fiscal year 2025, projecting adjusted earnings per share between $0.75 and $0.85, which falls short of the consensus estimate of $1.31. The company also anticipates net revenues of approximately $775 million, below the expected $806 million, citing macroeconomic uncertainty and weaker consumer sentiment as contributing factors. KeyBanc analysts responded by lowering their price target for Winnebago stock to $37 from $40, maintaining an Overweight rating, while DA Davidson adjusted their target to $42 from $54, keeping a Neutral rating. Despite these challenges, Winnebago has taken steps to improve profitability by modifying production schedules and adjusting headcount. The company also remains optimistic about its business transformation initiatives, highlighting the market share progress of Grand Design Towables and the anticipated launch of the Winnebago Thrive line. Additionally, Winnebago declared a quarterly cash dividend of $0.34 per share, continuing its 44th consecutive quarterly dividend payout. The company is set to provide a comprehensive update on its full-year outlook during a conference call scheduled for June 25, 2025. These developments reflect the company’s ongoing efforts to navigate challenging market conditions while maintaining its commitment to shareholder returns.

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