© Reuters. Camping World (CWH) shares ‘ are attractive at current levels’ – BMO Capital
Camping World (NYSE:) was lifted to Outperform from Market Perform, with the price target raised to $35 from $26 by BMO Capital Markets in a note to clients Wednesday.
BMO analysts said that following its latest channel checks, they believe used RVs are set to profit.
“Lower manufacturer production levels will benefit both CWH’s New RV margins as well its Used RV retail given the greater likelihood of lean channel inventory levels during the peak summer selling months,” the analysts wrote.
The firm notes that while there is some RV inventory in factory yards in Elkhart, IN, “these levels are significantly lower than a month ago and drastically lower than last year at this time.” In addition, the analysts said that transport lots also look mostly empty.
“With management keeping estimates at realistic levels, combined with potential upside from greater-than-expected dealership M&A, we think CWH shares are attractive at current levels,” the analysts concluded.
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