What Happened?
Shares of RV manufacturer Thor Industries (NYSE:THO) jumped 4.5% in the morning session after Loop Capital upgraded the stock's rating to 'Buy' from 'Hold' and increased its price target.
The firm set a new price target of $133, a significant increase from the previous target of $103. According to analyst Brandon Rolle, this change reflected increased confidence in the recreational vehicle maker's future performance. The positive rating revision from Loop Capital was a notable shift, as the broader consensus rating from other analysts had been a 'Hold'. This bullish view came as the RV industry's outlook appeared stable, with forecasts pointing to modest growth in wholesale shipments for the year.
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What Is The Market Telling Us
THOR Industries’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was about 1 month ago when the stock dropped 6.9% on the news that its strong third-quarter results were overshadowed by a weak full-year forecast.
The company posted earnings per share of 41 cents, significantly beating analyst forecasts of a loss, while sales grew 11.5% year on year to $2.39 billion. Although the stock initially traded higher on the positive results, it reversed course. The drop appeared to be linked to the company's forward-looking guidance. THOR Industries reconfirmed its full-year revenue forecast, which at the midpoint was 2.3% below analysts' estimates. Similarly, its full-year earnings per share guidance missed Wall Street's expectations by 1.9%. This weaker-than-expected outlook seemed to worry investors more than the strong quarterly performance pleased them.
THOR Industries is up 7.9% since the beginning of the year, and at $113.74 per share, has set a new 52-week high. Investors who bought $1,000 worth of THOR Industries’s shares 5 years ago would now be looking at an investment worth $1,105.
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