In a report released today, Michael Shlisky from D.A. Davidson maintained REV Group (REVG – Research Report) to a Buy, with a price target of $20.00.
Michael Shlisky has given his Buy rating to REV Group, Inc. due to a combination of factors he found encouraging during a meeting with the company’s management. Firstly, Shlisky was impressed with the significant improvements in the Fire & Emergency segment, acknowledging the positive changes implemented recently. Secondly, management’s account of the atmosphere at the Hershey RV show persuaded Shlisky that further investment in the Recreation segment would be beneficial rather than a drawback. Despite recognising the existence of risks, Shlisky’s improved outlook and the company’s fair valuation inspired a positive stance on the stock.
Key insights from the management meeting included the 2-3 years backlog in Fire & Emergency which could still deliver a truck in 18 months due to the efficiency of their S-180 model. Shlisky was also intrigued by the margin implications of the modular product. Additionally, the recent changes at the Ocala, FL F&E plant producing E-One fire vehicles have started to show positive results. The management’s surprisingly upbeat tone on the Recreation segment, thanks to a successful Hershey RV show and the company’s strategy to keep dealer inventories low, further bolstered Shlisky’s confidence. Finally, the progress in negotiations with the UAW, which could provide more certainty for REVG’s Ambulance business, and the new price target of $20, also contributed to the upgrade to a Buy rating.
According to TipRanks, Shlisky is an analyst with an average return of -4.8% and a 31.58% success rate. Shlisky covers the Industrials sector, focusing on stocks such as Wabash National, Deere, and REV Group.
In another report released on September 13, Robert W. Baird also maintained a Buy rating on the stock with a $20.00 price target.
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REV Group (REVG) Company Description:
REV Group, Inc. is a holding company. The firm engages in the manufacture, distribution, and design of specialty vehicles and related aftermarket parts and services. It operates through the following segments: Fire and Emergency, Commercial, Recreation, and Corporate and Other. The Fire and Emergency segment offers fire apparatus, and ambulance products. The Commercial segment involves in transit and shuttle buses, type A school buses, mobility vans, sweepers, and terminal trucks. The Recreation segment covers motorized recreational vehicle and application trailers. The Corporate and Other segment includes corporate office expenses, stock-based compensation, results of insignificant operations, intersegment eliminations, income and expenses. The company was founded in August 2010 and is headquartered in Milwaukee, WI.
Read More on REVG:
- Rev Group price target raised to $16 from $13.50 at DA Davidson
- Rev Group price target raised to $14 from $13 at Goldman Sachs
- Rev Group price target raised to $13 from $12 at Credit Suisse
- Rev Group price target raised to $20 from $16 at Baird
- Rev Group raises FY23 revenue view to $2.55B-$2.6B from $2.45B-$2.55B
