Camping World Foresees Stellar Sales Growth In Used RVs, Earns Upgrade From Analyst

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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