10:30 AM EDT, 03/27/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month target by $15 to $35, based on a FY 26 (Aug.) P/E of 8.0x, a steep discount to WGO's five-year mean forward P/E of 11.6x. We maintain our adjusted EPS estimates of $3.20 for FY 25 and $4.40 for FY 26. WGO posted Feb-Q adjusted EPS of $0.19 vs. $0.93 (-80%), three cents ahead of the $0.16 consensus. The beat was driven by slightly better-than-expected sales and margins, as revenue fell 12% to $620.2M ($3.5M ahead of consensus) and gross margin contracted 160 bps to 13.4% (20 bps ahead of consensus). One notable positive was that the company is starting to benefit from easier comps, as Towable RV unit sales were +7% Y/Y and Boats +21%, although Motorhome deliveries remain very weak (-37%). Not surprisingly, WGO lowered FY 25 adjusted EPS guidance, although the midpoint of guidance of $3.25 is slightly higher than the current consensus of $3.19. WGO's new guidance of $2.75-$3.75 is down from $3.10-$4.40 previously. We maintain Hold on concerns related to consumer discretionary spending.

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