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Investing.com - BMO Capital raised its price target on Winnebago Industries (NYSE:WGO) to $45.00 from $40.00 on Friday, while maintaining an Outperform rating on the recreational vehicle manufacturer’s stock. Currently trading at $39.39, InvestingPro analysis indicates the stock is fairly valued, with a market capitalization of $1.1 billion and an attractive dividend yield of 4.7%.
The price target increase follows Winnebago’s fiscal fourth-quarter 2025 results, which exceeded expectations according to BMO Capital. The stronger performance was primarily driven by better-than-expected revenue in the company’s motorized and marine segments, although the towable segment underperformed. InvestingPro data shows the company maintains strong liquidity with a current ratio of 2.41, though it faces challenges with weak gross profit margins of 13.1%.
Winnebago management also released its fiscal year 2026 guidance, with the midpoint earnings per share figure coming in ahead of Wall Street and investor expectations, which had been lowered prior to the earnings announcement.
BMO Capital indicated that the fiscal year 2026 guidance appears achievable, with most of the anticipated top-line growth expected to come from Grand Design motorized vehicles. Earnings per share growth is projected to be driven by operational improvements, particularly in the Winnebago Motorized division.
The investment firm has raised its estimates in line with the company’s guidance, which subsequently led to the increased price target for Winnebago stock.
In other recent news, Winnebago Industries has reported strong financial results for its fourth quarter of 2025, exceeding market expectations. The company achieved an adjusted earnings per share of $0.71, surpassing the consensus estimate of $0.52 per share. Revenue for the quarter was reported at $777.3 million, which exceeded the anticipated $725.35 million. Following these results, DA Davidson and Jefferies both raised their price targets for Winnebago to $38, with DA Davidson maintaining a Neutral rating and Jefferies holding a Hold rating.
Additionally, Winnebago provided fiscal year 2026 guidance that slightly surpassed consensus estimates at the midpoint. Despite these positive developments, KeyBanc downgraded Winnebago from Overweight to Sector Weight, citing limited upside potential. The company has shown strong motorhome sales, contributing to the optimism reflected in the revised price targets. These recent developments indicate ongoing interest and analysis from major firms regarding Winnebago’s financial performance and future prospects.
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