China smartphone shipments slumped in June on inventory overhang: Jefferies
Investing.com - REV Group (NYSE:REVG), a $2.57 billion vehicle manufacturer trading near its 52-week high of $53.74, is experiencing mixed signals in the recreational vehicle market, according to a recent industry analysis by DA Davidson. According to InvestingPro, the company has delivered an impressive 66.44% return year-to-date.
RV chassis orders increased 179% year-over-year in July, though DA Davidson notes this growth comes "off a very low base." Production also showed strength with a 71% increase during the same period.
Despite these positive indicators, the report highlights concerning inventory levels that "continue to climb to new records as summer wraps up," which the firm does not view as promising for the industry overall.
DA Davidson maintains a "BUY" rating on REV Group, suggesting the current chassis data might represent "a positive sign for next year’s RV industry" rather than immediate strength.
The firm also expressed confidence in REV Group’s diversification, noting its Fire business segment "has multiple years of growth from here," providing a "good complement" to the more cyclical RV division.
In other recent news, REV Group reported stronger-than-expected earnings for the second quarter of fiscal year 2025. The company’s earnings per share reached $0.70, surpassing the forecasted $0.55, while revenue came in at $629.1 million, exceeding the anticipated $603.5 million. DA Davidson analysts responded by raising the stock price target to $51 from $39 and maintained a Buy rating, highlighting the company’s increased EBITDA forecast for fiscal year 2025 and confidence in its fiscal year 2027 guidance. Additionally, Morgan Stanley (NYSE:MS) upgraded REV Group from Underweight to Equalweight, citing better-than-expected price/cost dynamics and robust product demand. In leadership changes, REV Group promoted Linas Polteraitis to chief supply chain officer, continuing his role under CEO Mark Skonieczny. DA Davidson also reiterated a Buy rating, noting a significant increase in RV chassis orders and production in July. These developments reflect the company’s ongoing operational efficiency and strategic positioning in the market.
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