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Investing.com - BMO Capital raised its price target on LCI Industries (NYSE:LCII) to $85.00 from $80.00 on Wednesday, while maintaining an Underperform rating on the stock. According to InvestingPro data, analyst targets currently range from $80 to $135, with the stock trading at a PEG ratio of 0.23, suggesting potential undervaluation despite near-term challenges.
The price target adjustment follows LCI Industries’ second-quarter 2025 results, which BMO noted came in better than expected. The company’s performance was boosted by organic content growth and pricing, which helped offset ongoing unfavorable mix and tariff headwinds. InvestingPro analysis shows the company maintains strong financial health with an overall score of "GOOD" and expects 5% revenue growth for FY2025.
BMO Capital adjusted its estimates for LCI Industries, lowering projections for 2025 while raising them for 2026. This recalibration of future performance expectations contributed to the higher price target despite the maintained Underperform rating.
The research firm expressed continued concerns about mix headwinds that are expected to persist into the second half of 2025. These challenges could impact the company’s performance in the coming quarters.
BMO also highlighted uncertainty surrounding tariffs, specifically questioning LCI Industries’ ability to pass through offsetting price increases, which could potentially pressure the company’s market share.
In other recent news, LCI Industries reported its second-quarter 2025 earnings, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $2.39, outperforming the forecasted $2.32. Additionally, LCI Industries exceeded revenue projections by reporting $1.1 billion, compared to the anticipated $1.07 billion. Despite these strong financial results, the stock experienced a slight decline in pre-market trading. These developments provide investors with important insights into the company’s recent financial performance.
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