On Friday, Citi upgraded the stock of Thor Industries Inc. (NYSE: NYSE:THO), a prominent recreational vehicle (RV) manufacturer, from Neutral to Buy. The firm also increased the price target for Thor Industries to $122.00, up from the previous target of $111.00. The upgrade comes after a period of market hesitation regarding the RV sector, with Thor Industries recently experiencing a downturn in performance.
In the assessment, the analyst from Citi noted that despite the RV industry's early-cycle story attracting investors on several occasions, those investments were premature. However, following a recent earnings miss, lowered guidance, and a subsequent sell-off in Thor Industries' shares, the firm believes the company is poised for recovery.
The analyst projected that the declines seen in February would be significantly less severe than those in January and anticipated a positive industry turnaround by April or May.
The analyst's outlook suggests that as the industry improves, RV dealers will likely gain confidence in placing orders. This, in turn, is expected to bring stability to original equipment manufacturer (OEM) guidance. The anticipated result is an appreciation in the value of Thor Industries' shares, which could potentially increase substantially.
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