BofA raises Thor Industries stock price target to $680

Published 30/01/2025, 20:04
BofA raises Thor Industries stock price target to $680

On Thursday, BofA Securities analyst Alex Perry increased the price target on Thor Industries Inc. (NYSE: NYSE:THO) shares to $680 from $660 and maintained a Buy rating. The adjustment reflects the analyst’s confidence in the company’s outlook amidst a changing political landscape and market conditions. According to InvestingPro analysis, Thor Industries appears undervalued at its current price of $105.68, with a market capitalization of $5.63 billion.

Thor Industries, renowned for its recreational vehicles, has integrated expectations of modest policy changes by the new administration into its guidance. This anticipation is based on the belief that the new administration will foster a more business-friendly climate, particularly enhancing the mergers and acquisitions environment. The company currently trades at a P/E ratio of 26.71, with annual revenue of $9.69 billion, demonstrating its significant market presence.

Management at Thor Industries is optimistic about the company’s performance as the year unfolds, citing their strategy of navigating through unexpected changes effectively. They have previously expressed at conferences that they foresee a more conducive environment for business under the new administration.

In the Chinese market, Thor Industries experienced mid-single-digit growth in the fourth quarter and is currently benefiting from some stimulus measures, which have led to an uptick in order intake. The company’s Services business, which includes Contract Research Organization (CRO) and Contract Development and Manufacturing Organization (CDMO) operations, has been identified as a particularly strong area in fiscal year 2025. Management has noted robust authorizations and an accelerating growth trajectory, especially after overcoming the early challenges posed by COVID-19 in the year.

The raised price target by BofA Securities signals a positive outlook for Thor Industries, bolstered by strategic management decisions and favorable market conditions as the company progresses through the fiscal year. InvestingPro data reveals two key insights: the stock has maintained dividend payments for 39 consecutive years, though it experiences notable price volatility with a beta of 1.67. For deeper insights into Thor Industries’ financial health and growth potential, including 5 additional ProTips and comprehensive analysis, explore the full Pro Research Report available on InvestingPro.

In other recent news, Thor Industries, a leading recreational vehicle manufacturer, experienced a dip in its first-quarter earnings and revenue, falling short of analysts’ estimates. The company revealed an earnings per share (EPS) of $0.20, missing the expected $0.71. Similarly, the revenue for the quarter was $2.14 billion, lower than the anticipated $2.25 billion. Despite these results, Thor Industries has maintained its fiscal year 2025 sales and EPS guidance, projecting an EPS in the range of $4.00 to $5.00, and revenue to be between $9.0 billion and $9.8 billion.

Furthermore, Thor Industries shareholders recently participated in their annual meeting, where they elected board directors and ratified Deloitte & Touche LLP as the company’s independent registered public accounting firm for fiscal year 2025. The company also declared a quarterly cash dividend of $0.50 per share, continuing a 38-year streak of dividend payments.

In terms of analyst attention, Jefferies maintained a Hold rating on Thor Industries, expressing caution towards the company’s recovery in the second half of the year due to uncertain macroeconomic conditions. Additionally, KeyBanc Capital Markets provided insights into the recreational vehicle industry, noting that affordability remains a concern in the industry. These are recent developments to consider for investors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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