Street Calls of the Week
Investing.com - DA Davidson raised its price target on Winnebago Industries (NYSE:WGO) to $38.00 from $32.00 on Friday, while maintaining a Neutral rating on the recreational vehicle manufacturer’s stock. According to InvestingPro data, analyst targets for WGO range from $30 to $75, with the stock currently trading near $39.
The price target adjustment follows Winnebago’s fourth-quarter 2025 earnings results, which exceeded market expectations. The company also introduced fiscal year 2026 guidance that slightly surpassed consensus estimates at the midpoint. InvestingPro analysis indicates that net income is expected to grow this year, despite current gross profit margins of 13.13%.
DA Davidson noted that Winnebago is currently navigating a turnaround within several of its RV-related segments, which could potentially lead to an improved profitability profile if successfully executed.
Despite acknowledging the potential earnings power, the research firm remains cautious on Winnebago stock in the near term, citing both industry-wide challenges and company-specific dynamics.
The new $38 price target is based on a price-to-earnings multiple of 16.0x applied to DA Davidson’s fiscal year 2026 earnings estimate of $2.35 per share, which is slightly above the $2.30 consensus estimate.
In other recent news, Winnebago Industries reported its fiscal fourth-quarter results, surpassing earnings expectations. The company achieved an adjusted diluted earnings per share (EPS) of $0.71, significantly exceeding the consensus estimate of $0.52 per share. Revenue for the quarter was also strong, reaching $777.3 million, which was above the anticipated $725.35 million. Jefferies responded to these results by raising its price target for Winnebago to $38, while maintaining a Hold rating, citing strong motorhome sales. Despite the positive earnings report, KeyBanc downgraded Winnebago from Overweight to Sector Weight, suggesting limited upside potential. The downgrade came even though Winnebago provided fiscal year 2026 adjusted EPS guidance above Street estimates. These recent developments have drawn varied reactions from analysts, reflecting different perspectives on the company’s future performance.
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