- BMO Capital Markets analyst Gerrick L. Johnson upgraded Camping World Holdings Inc CWH to Outperform from Market Perform at an increased price target of $35 from $26 prior.
- Per their recent RV industry channel checks, the analyst thinks a decline in manufacturer production levels will benefit CWH amid highly probable poor inventory levels in the peak summer selling months.
- In particular, Johnson's research indicates a significant decline in manufacturer production rates in June and July, ahead of the MY24 rollout. The analyst projects retail sales to exceed shipments in July and August, resulting in a shortage by late summer.
- Amid lower OEM production, the analyst expects CWH to sell carryover MY22 products at better pricing leading to above-market new RV margin expansions and higher-than-expected same-store sales growth in used RV.
- Apart from this, Johnson sees continued acquisitions as a growth driver for the company.
- Related: Camping World Expands In Arkansas: Breeden RV Center Acquisition On The Horizon
- The analyst raised estimates for Q2 2023 revenues to $2.057 billion (from $2.022 billion) and EPS to $0.83 (from $0.71) and 2023 revenues and EPS to $6.778 billion (from $6.700 billion) and $1.75 (from $1.55), respectively.
- Also, Johnson increased 2024 revenue, and EPS estimates to $7.199 billion (from $7.037 billion earlier) and $3.00 (from $2.55), respectively.
- Also Read: Wall Street's Most Accurate Analysts Say Hold These 3 Consumer Stocks With Over 8% Dividend Yields
- Price Action: CWH shares are trading higher by 3.38% at $27.21 on the last check Wednesday.
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