Thor Industries, the manufacturer of iconic Airstreams based in Elkhart, Indiana, is positioned as a promising investment opportunity within the recreational vehicle industry, as highlighted by Bank of America analyst Alexander Perry. Perry's recent upgrade of Thor Industries from neutral to buy status, along with a 14% increase in the price target to $125, reflects a bullish outlook on the company's growth potential. This new target suggests a potential surge of more than 25% in the stock compared to its previous closing price.
One of the key factors driving Perry's optimism is Thor's strategic initiatives to expand its customer base and enhance its shipment volumes. Perry believes that Thor is well-positioned to regain market share, particularly at Camping World, which experienced a downturn in 2024. The company's ability to offer competitive pricing across its towable contract manufacturing lines has also been instrumental in driving growth. In December, Thor's inventory at RV dealer Camping World saw a significant increase, supporting a higher volume of shipments in the company's fiscal second quarter ending Jan. 31.
Bank of America Analyst Upgrades Thor Industries to Buy
Bank of America analyst Alexander Perry has upgraded Thor Industries, the manufacturer of iconic Airstreams based in Elkhart, Indiana, to a buy rating from neutral. He has also raised the price target by 14% to $125, indicating a potential increase of over 25% from the previous closing price.
Overall, Perry's analysis points to a favorable outlook for Thor Industries, citing encouraging signs of growth in the RV industry, including lower channel inventory levels, increased value of used units, and robust shipment data. With a strong performance anticipated in the second half of its fiscal year ending July 31, Thor Industries appears poised for a resurgence in the market, making it an appealing prospect for investors seeking exposure to the thriving recreational vehicle sector.
Positive Outlook for Thor Industries
Perry's upgrade is based on his belief that Thor Industries is poised for a rebound as it expands its customer base and boosts its shipments. He notes that the company is regaining market share, particularly at Camping World, which experienced lows in 2024. Perry is optimistic about Thor's ability to reach competitive price points and increase shipments, especially after observing a significant increase in inventory at RV dealer Camping World in December.
Although Thor Industries faced challenges in 2024, with a 19% decline in its stock price, recent developments indicate a positive turnaround. The company's stock has already seen an 8% increase this year, with early trading on Monday showing a 2.5% gain. Perry's upbeat earnings estimates for Thor are backed by improving trends in RV sales and a higher level of dealer confidence, particularly as the industry heads into the peak selling season from late spring to summer.
Strong Performance Despite Challenges
While Thor Industries saw a 8% increase in its shares this year, the company faced a challenging period in 2024, with a 19% decline in its stock value. The slump in December was attributed to missing Wall Street estimates for first-quarter earnings and revenue. Despite these challenges, management remains confident in a strong performance in the second half of the fiscal year.
Optimism in the RV Industry
Perry's positive outlook is supported by improving RV sales trends and increased dealer optimism as peak selling season approaches. He highlights favorable industry conditions such as lean channel inventory levels, rising value of used units, and robust shipment data. These factors indicate a promising future for Thor Industries in the recreational vehicle market.
Thor Industries is well-positioned to benefit from the growing demand in the recreational vehicle sector, making it an attractive investment opportunity according to Bank of America's analysis.
