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On Thursday, Truist Securities revised its price target for Thor Industries Inc. (NYSE:THO) shares, reducing it from $110.00 to $90.00. Despite the adjustment, the firm maintained a Hold rating on the stock. The decision followed Thor Industries’ earnings miss for the second fiscal quarter and the company’s downward revision of its guidance for fiscal year 2025. The stock has declined significantly, trading at $81.40, down 17.1% in the past week and currently near its 52-week low of $78.88. InvestingPro analysis indicates the stock may be undervalued at current levels, with additional insights available through their comprehensive Pro Research Report.
The analyst at Truist Securities explained the rationale behind the new price target, stating that the firm had lowered its fiscal year 2025 and 2026 estimates. The reduction reflects a more cautious stance regarding the speed of Thor Industries’ earnings recovery in the coming years. Despite the stock’s relatively low valuation at 7.5 times the estimated 2025 EBITDA, the analyst suggested that a significant non-macro catalyst would be necessary to adopt a more positive outlook on the shares. The company maintains strong financial health with a current ratio of 1.71 and operates with moderate debt levels, while maintaining an impressive 39-year track record of consecutive dividend payments.
Thor Industries’ recent financial performance has led to a reassessment of its future earnings potential. The company’s guidance adjustment for fiscal year 2025 has been a critical factor in Truist Securities’ updated analysis and price target setting.
The analyst’s commentary highlighted the tempered expectations ahead of the earnings report, indicating that the market was not anticipating strong results. However, the subsequent guidance provided by Thor Industries has reinforced a more guarded perspective on the company’s earnings recovery timeline.
Investors and market watchers now have a revised price target from Truist Securities to consider when evaluating Thor Industries’ stock. The firm’s Hold rating remains unchanged, suggesting that while the stock is not currently seen as overvalued, potential investors may await further developments before changing their positions.
In other recent news, Thor Industries reported its fiscal second-quarter earnings, which fell short of analyst expectations, while its revenue surpassed estimates. The company posted a loss of $0.01 per share, contrary to analysts’ predictions of earnings of $0.08 per share. However, revenue reached $2.02 billion, exceeding the consensus forecast of $1.97 billion. Despite this revenue beat, net sales decreased by 8.6% year-over-year, influenced by reduced shipments in both the North American Motorized and European RV segments. Thor Industries also experienced a slight contraction in its gross profit margin, which fell to 12.1% from 12.3% in the previous year. The company has revised its full-year fiscal 2025 guidance, now anticipating consolidated net sales between $9.0 billion and $9.5 billion, down from an earlier range of $9.0 billion to $9.8 billion. Additionally, Thor Industries adjusted its diluted EPS forecast to $3.30 to $4.00, compared to the prior outlook of $4.00 to $5.00. These revisions are attributed to ongoing macroeconomic challenges and difficult market conditions, particularly in its North American Motorized and European segments.
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