On Friday, Citi reaffirmed its Buy rating on shares of Thor Industries Inc. (NYSE:THO), with a steady price target of $122.00. The endorsement comes despite a prolonged slump in the recreational vehicle (RV) industry, which has seen year-over-year declines for 32 consecutive months. The firm anticipates a potential turnaround in the RV market within the next 90 days, projecting a positive shift in the April-May period.
The analyst from Citi highlighted that the ongoing decline in RV industry retail data is in line with existing industry expectations. However, they anticipate that the upcoming months could signal a pivotal moment for the industry.
The anticipated positive inflection is expected to encourage dealers to increase their orders and original equipment manufacturers (OEMs) to have more confidence in their guidance. This, in turn, is likely to attract investors back to Thor Industries, potentially enhancing the company's market valuations.
Thor Industries, a leading manufacturer of recreational vehicles, has been navigating through a challenging period marked by consistent year-over-year sales drops. The industry's performance has been closely watched by analysts and investors alike, as it serves as an indicator of consumer discretionary spending and broader economic health.
The statement from Citi suggests that the firm is optimistic about Thor Industries' prospects, despite the recent industry downturn. The analyst's comments indicate a belief that the upcoming months could be critical for the RV industry and Thor Industries, particularly as dealers and investors reassess their engagement with the market.
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