Thor Industries Inc (NYSE:THO) stock edged down Tuesday after Bank of America Merrill Lynch kicked off coverage of the recreational-vehicle stock with an Underperform rating.
Analyst John Lovallo predicted a “work-down” of US RV inventory at dealerships though at least the third quarter, and survey data from the RV Industry Association agrees. The trade association found that wholesale RV shipments in February came in at 36,421 units, down 15% from the previous year.
Investors couldn’t pick a direction, swerving the price up and down all day. The shares slipped 0.2% to $58.89 in early-afternoon trading.
READ: RV maker Winnebago rallies after fiscal 2Q profit beats estimates
Bank of America Merrill Lynch set a price target of $62 for the Elkhart, Indiana-based recreational-vehicle manufacturer, a 5% premium on Friday’s closing price.
Thor isn’t the only RV company facing a squeeze. Winnebago Industries (NYSE:WGO) posted fiscal second-quarter revenue Monday that dropped 7.6% from a year earlier.
Shares of Forest City, Iowa-based Winnebago slipped 1.7% to $28.52 on Monday..
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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