LCII - Camping World up as Truist is ready to pitch a tent

2023-08-07 11:39:19 ET

Truist is ready to go camping.

The firm upgraded Camping World Holdings ( NYSE: CWH ) to Buy from Hold and raised its price target to $35 from $18 seeing “material upside” to 2024 Street estimates pointing to a “more compelling entry point for investors.”

Shares rose nearly 5% on Monday.

Last week, CWH tumbled after slashing its dividend by 80% and missing estimates on second quarter earnings.

The Lincolnshire, Ill.-based group reported non-GAAP EPS of $0.73 that missed the average analyst estimate by $0.03, and revenue of $1.9B that missed by $70M.

Short interest on CWH is relatively high at 18.8% compared to rival Patrick Industries ( PATK ) at 5.3% and LCI Industries ( LCII ) at 9%.

Truist analysts Michael Swartz and Lucas Servera said they are raising their 2024 estimates for adjusted EBITDA to $450M from $440M and see potential for earnings “well north” of $500M compared to the consensus of $482M.

Looking ahead, CWH should benefit from a much healthier mix of new inventory, market share recovery and the strategic expansion of pre-owned and private label RVs, the analysts said.

Camping World ( CWH ) is down 5% in the past 12 months and up 30% this year so far.

More on CWH:

• Camping World: Outlook Positive, Shares Fairly Priced
• Camping World Holdings, Inc. ( CWH ) Q2 2023 Earnings Call Transcript
• Camping World cuts dividend, misses estimates; shares tumble

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