Truist Securities raises Thor Industries stock price target to $86

Published 04/06/2025, 22:20
Truist Securities raises Thor Industries stock price target to $86

On Wednesday, Truist Securities analysts increased the price target for Thor Industries Inc. (NYSE: NYSE:THO) to $86 from $78, while maintaining a Hold rating on the stock. The decision follows the company’s solid fiscal third-quarter performance and its reaffirmation of fiscal year 2025 guidance. According to InvestingPro analysis, Thor Industries is currently trading slightly below its Fair Value, with a P/E ratio of 22.48x and an EV/EBITDA multiple of 8.3x.

The analysts noted that Thor Industries’ management provided stable retail trends for April and May, contributing to the decision to raise the price target. They see the company’s fiscal year 2026 revenue and EBITDA growing year-over-year, assuming a stable market environment. However, InvestingPro data reveals that analysts anticipate sales and net income declines in the current year, with eight additional key insights available to subscribers.

Despite the positive outlook, Truist Securities remains cautious about Thor Industries’ ability to improve margins and profitability. The analysts highlighted concerns about the company’s recent market share losses and emphasized the need for more evidence of improvement before considering a more favorable rating. This aligns with InvestingPro data showing a modest gross profit margin of 14.21%, though the company maintains a FAIR overall Financial Health Score.

Thor Industries shares are currently trading at approximately 6.5 times the estimated 2026 EBITDA and 14.5 times the estimated 2026 EPS. The analysts believe these valuations are not particularly high but require further assurance of the company’s financial performance.

The Hold rating reflects a balanced view of the company’s current valuation and the potential for future growth, contingent on improved market conditions and operational performance.

In other recent news, Thor Industries reported a third-quarter fiscal 2025 loss per share of $2.53, which exceeded both Citi’s estimate of $1.52 and the consensus estimate of $1.78. The company’s adjusted EBITDA reached $255 million, surpassing expectations and last year’s figure. Despite these results, Thor Industries maintained its fiscal year 2025 guidance, indicating expectations of a challenging fourth quarter. KeyBanc Capital Markets raised its price target for Thor Industries to $65, reflecting updated financial estimates, but maintained an Underweight rating due to concerns about retail demand and valuation. Stifel analysts adjusted their fiscal third-quarter sales projections for Thor to $2.63 billion, with earnings per share expectations raised to $1.73. Thor Industries also announced a regular quarterly cash dividend of $0.50 per share, emphasizing its commitment to shareholder returns. Additionally, the company plans to integrate Heartland Recreational Vehicles under the Jayco brand to enhance operational efficiencies. Citi analysts downgraded Thor Industries stock from Buy to Neutral, reducing the price target to $86, citing industry challenges and margin pressures.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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