THO - Thor Winnebago downgraded by DA Davidson on inventory issues

Recreational vehicle stocks offer no respite for investors in a volatile market, according to D.A. Davidson. In a note downgrading both Thor industries (NYSE:THO -2.8%) and Winnebago Industries (NYSE:WGO -5.0%), the bank’s consumer analyst Brandon Rolle advised OEMs have “massively overproduced inventory.” The new note to clients relays a story of industry checks done by the bank’s consumer team, including a trip to Elkhart, Indiana to observe factory lots and dealer dynamics. “What we saw was astonishing, with factory lots for both [Thor Industries] (THO) and [Winnebago Industries] (WGO) filled with a massive amount of units, in addition to packed storage yards in close proximity to the factories,” Rolle wrote. “We even saw random farm land being used to store RVs, which underscores the mass overproduction taking place within and around Elkhart, IN.” Per subsequent conversations with industry sources, Rolle reported that large scale order cancellations by dealer chains and

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Thor, Winnebago downgraded by DA Davidson on inventory issues