Raymond James Cuts Camping World Price Target By 7% After Mixed Q4 Earnings

Raymond James analyst Joseph Altobello reiterated an Outperform rating on the shares of Camping World Holdings, Inc.CWH and lowered the price target from $30 to $28.
The analyst said the company reported mixed 4Q results Tuesday afternoon, as further margin compression and a jump in floor plan financing expense more than offset a largely as-expected top line.
The lower adjusted EBITDA was due to a planned reduction in underperforming retail inventory totaling ~$46 million with compressed margins from heavy discounting and higher floor plan expense due primarily higher interest rates.
The analyst noted that the margin declines were worse than expected.
With 2023 expected to be a tough year for CWH in terms of profitability, the analyst believes it's prudent to value the company on 2024 forecasts.
The rating on the shares reflects the analyst's view that the stock is already pricing in a fairly sharp demand slowdown and steep margin declines through 2023.
The analyst continues to believe that by leveraging its scale and extensive customer database, along with an increasingly diversified revenue base, CWH remains uniquely positioned to continue to deliver healthy organic LT growth, augmented by fairly aggressive footprint expansion.
Also Read: Camping World's Stock Skyrocketed During The Pandemic, But How's It Doing Now?
Price Action: CWH shares are trading lower by 2.32% at $22.99 on the last check Thursday.

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