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On Thursday, Citi analysts increased the price target for Thor Industries Inc. (NYSE: NYSE:THO) stock to $88 from the previous $74, with the stock currently trading at $85.91. According to InvestingPro analysis, Thor appears undervalued based on its Fair Value calculation. The decision follows a strong performance in the company’s third-quarter results. Despite this adjustment, Citi maintains a Neutral rating on the stock.
Thor Industries reported better-than-expected results for the third quarter, with shipments surpassing retail expectations and improved margins, though the gross profit margin remains at 14.3%. The company maintains strong financial health with a current ratio of 1.71 and moderate debt levels. However, Citi analysts anticipate that some of these gains might not continue into the fourth quarter. Thor’s management expressed caution, noting that both consumers and dealers remain hesitant in the current economic environment.
The analysts highlighted that Thor’s management downplayed the potential for incremental earnings drivers that could lead to year-over-year growth in fiscal year 2026. This stance might result in downward pressure on consensus expectations, which had assumed significant improvement.
Affordability is identified as a major challenge for Thor Industries. The ongoing interest rate environment adds to the uncertainty, leading Citi to maintain its Neutral rating despite the revised price target.
The cautious outlook from Thor’s management and the analysts reflects the complexities facing the company, even as it navigates a challenging market landscape.
In other recent news, Thor Industries reported robust fiscal third-quarter results, surpassing expectations on both earnings and revenue. Despite this strong performance, the company chose to maintain its fiscal year 2025 guidance, citing ongoing macroeconomic uncertainties. Truist Securities responded by raising the price target for Thor Industries to $86, while maintaining a Hold rating, highlighting stable retail trends in April and May. Meanwhile, Citi analysts kept a Neutral rating with a $74 price target after noting Thor’s adjusted EBITDA exceeded expectations, driven by unit growth and higher average selling prices.
KeyBanc analysts reaffirmed their Underweight rating, increasing the price target to $65, reflecting concerns over Thor’s valuation and a challenging retail environment. Stifel analysts adjusted their fiscal third-quarter sales projections to $2.63 billion, up from $2.44 billion, with earnings per share expectations also rising, though they anticipate results in line with consensus. Thor Industries announced a regular quarterly cash dividend of $0.50 per share, emphasizing its commitment to shareholder returns. The company also issued forward-looking statements addressing various risks, including inflation and geopolitical events, which could impact future performance.
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