Bank of America just raised its EUR/USD forecast
On Monday, BofA Securities analyst Alex Perry upgraded Thor Industries Inc. (NYSE:THO) stock from Neutral to Buy, lifting the price target to $125 from the previous $110. Perry cites a positive outlook for the recreational vehicle manufacturer, noting an 18x multiplier on the revised fiscal year 2026 estimated earnings per share (EPS) of $6.90, which is 13% above the consensus. According to InvestingPro data, Thor currently trades at a P/E ratio of 24.87 and appears undervalued based on Fair Value analysis, with the stock showing notably volatile price movements over the past year.
According to Perry, Thor Industries is on a path to regain market share, particularly with Camping World (NYSE:CWH), which experienced lows in 2024. Statistical Surveys Inc. (SSI) data suggests that Thor’s share as a percentage of Camping World retail sales saw a significant decline in 2024, but the company has made strides in reversing this trend. Perry points out that if Thor had maintained its market share at Camping World, its total retail figures could have been 3.6 percentage points higher, thanks to an additional 5,000+ units sold. With a market capitalization of $5.3 billion and a strong financial health score from InvestingPro, Thor maintains solid fundamentals, including a healthy current ratio of 1.71 and moderate debt levels.
For 2025, Perry believes Thor Industries has effectively hit more competitive price points with its towable contract manufacturing lines, including Coleman, Pioneer, and Mallard brands. This pricing strategy appears to have paid off, with an estimated 7 percentage point increase in Thor’s inventory value at Camping World since December, indicating a potential rise in shipments for the second fiscal quarter.
The analyst also anticipates potential market share gains for Thor with other large customers, as CEO Bob Martin refocuses the company’s efforts on North America. Martin’s industry experience and established relationships are expected to contribute to Thor Industries’ growth and market presence.
Thor Industries’ stock upgrade and price target increase reflect BofA Securities’ confidence in the company’s strategic moves to recapture market share and strengthen its position in the recreational vehicle market. Notably, the company has maintained dividend payments for 39 consecutive years, with investors anticipating the next earnings report on March 5, 2025. For deeper insights into Thor Industries’ valuation and growth prospects, including exclusive ProTips and comprehensive financial analysis, visit InvestingPro.
In other recent news, Thor Industries reported a fourth-quarter earnings per share (EPS) of -$0.03, falling short of the estimated $0.69 and consensus of $0.71, largely due to $15.5 million in one-time costs and challenges in the Motorized segment. Despite these setbacks, the Towables segment saw a 6.8% increase, driven by a shift to a lower average selling price mix. Jefferies maintained a Hold rating on Thor Industries, citing an uncertain recovery ahead, while BofA Securities raised the stock price target to $680, reflecting confidence in the company’s outlook. Thor Industries’ management reaffirmed its EPS guidance of $4.00 to $5.00, despite soft restocking trends expected through the second quarter.
In another development, Thor Industries’ shareholders elected directors and ratified Deloitte & Touche LLP as their independent auditor for fiscal year 2025, indicating confidence in the company’s strategic direction. Additionally, Thor Industries declared a quarterly cash dividend of $0.50 per share, scheduled for payment in January 2025, as part of its ongoing financial strategies. The company has expressed optimism about retail prospects in 2025, bolstered by increased dealer optimism and strategic pricing initiatives. However, affordability concerns remain a significant challenge in the RV industry, as noted by KeyBanc Capital Markets. Thor Industries is focusing on improving gross margins, especially through towable margins, while remaining prepared for various market scenarios.
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