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On Thursday, BMO Capital analysts reiterated their Outperform rating for Thor Industries Inc. (NYSE: NYSE:THO) stock, maintaining a price target of $105.00. According to InvestingPro analysis, the stock appears undervalued at its current price of $85.91, with a P/E ratio of 19.75. The analysts highlighted that Thor Industries’ fiscal third-quarter 2025 results exceeded expectations, although the company remains cautious about the near-term outlook.
The analysts noted that retail demand was softer than anticipated, and macroeconomic uncertainties could continue to impact ordering until dealers have more confidence in the calendar year 2026. Despite these challenges, including a 6.42% revenue decline over the last twelve months, the analysts emphasized that the quarter demonstrated Thor Industries’ leverage in its business model when volumes increase. InvestingPro data reveals the company maintains strong financial health with a current ratio of 1.71 and has consistently paid dividends for 39 consecutive years.
Thor Industries maintained its fiscal year 2025 guidance, reflecting a conservative approach amid ongoing market uncertainties. The company’s cautious commentary for the fourth quarter and first quarter reflects these concerns.
Looking ahead, the analysts see potential upside for Thor Industries from market share normalization and improved production management aligned with retail demand. The initial fiscal year 2026 commentary from Thor Industries is viewed as conservative by the analysts, given these potential growth factors.
In other recent news, Thor Industries reported better-than-expected third-quarter results, with shipments and margins surpassing expectations. Despite these strong results, Thor Industries has maintained its fiscal year 2025 guidance due to ongoing macroeconomic uncertainties. KeyBanc has reaffirmed its Underweight rating on the stock, keeping the price target at $65, citing concerns over a challenging retail environment. Citi analysts have raised their price target to $88, while maintaining a Neutral rating, acknowledging the company’s strong performance but expressing caution about future earnings growth. Truist Securities also raised its price target to $86, maintaining a Hold rating and noting stable retail trends in recent months.
The company’s adjusted EBITDA for the third quarter reached $255 million, exceeding both the Street’s and Citi’s expectations. However, Thor Industries’ management has expressed caution about the fourth quarter and fiscal year 2026, with analysts noting potential challenges in maintaining margins and profitability. Stifel analysts have adjusted their fiscal third-quarter sales projections for Thor to $2.63 billion, with earnings per share expectations raised to $1.73. Despite these adjustments, the firm anticipates earnings in line with or slightly above consensus, with revenue expected at $2.598 billion and EPS forecasted at $1.76.
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