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Investing.com - BMO Capital upgraded LCI Industries (NYSE:LCII) from Underperform to Market Perform on Monday, while raising its price target to $110 from $85.
The research firm cited LCI Industries’ solid third-quarter 2025 results and realistic expectations for 2026 as key factors behind the rating change.
BMO Capital analyst acknowledged previous concerns about the company, including OEM vertical integration issues related to Airxcel, potential OEM chassis diversification, Frame Flex concerns, and questions about how affordability headwinds would impact content trends.
The upgrade follows what BMO described as "thesis drift" in its previous analysis, with the firm no longer seeing justification for maintaining an Underperform rating on the stock.
LCI Industries shares currently trade at approximately 13 times Street estimates for 2026, according to BMO Capital’s research note. The stock currently has a P/E ratio of 14.53 with a notably low PEG ratio of 0.36, suggesting it’s trading at an attractive valuation relative to its growth prospects. Additionally, LCII has raised its dividend for 8 consecutive years, currently offering a 4.44% yield. For deeper insights and comprehensive analysis, check out the Pro Research Report available on InvestingPro, which covers what really matters for smarter investing decisions.
In other recent news, LCI Industries reported a strong performance for the third quarter of 2025, significantly surpassing earnings and revenue forecasts. The company achieved an adjusted earnings per share of $1.97, exceeding the projected $1.44, which represents a 36.81% surprise. Revenue also outperformed expectations, reaching $1.04 billion against a forecast of $963.75 million, marking a 7.91% surprise. Additionally, Loop Capital initiated coverage on LCI Industries with a Buy rating and set a price target of $116.00. The investment firm highlighted LCI Industries’ solid third-quarter earnings performance, noting strong content and unit growth. These developments suggest the company is well-positioned to potentially outperform consensus expectations in the future.
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