THO - Thor Industries: On The Road Again

• Thor’s business continues to boom despite expectations for a cyclical slowdown, COVID related uncertainty and profitability pressure from cost inflation.
• The gap between the company’s strong performance and weak expectations, combined with Thor’s strong positioning in an oligopoly, has created a buying opportunity.
• Thor’s share price is often more volatile than its underlying business, and the current valuation is attractive even if current demand levels fall significantly.
• After exiting our position in August 2020 at around $117, we re-entered the company in March at around $82 with a modestly sized position, leaving room to add more shares.

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