Raymond James Reiterates Outperform Rating on Camping World Holdings (CWH)

Raymond James analyst Joseph Altobello reiterated an Outperform rating and $8.25 price target on Camping World Holdings (NYSE: CWH).

The analyst comments "CWH to miss guidance. In what should not come as a huge surprise to anyone following the RV industry of late, Camping World announced this morning that it expects FY26 adj. EBITDA to be below the low end of current guidance of $230-270M. The company cited continued macro and demand uncertainty, which we’ve written about extensively, including in our weekly update which we published Friday after attending last week’s RV Open House event in Elkhart, Indiana. ● Weak selling season and increased promos. Recall that the company commented on its 2Q earnings call in late July that unit demand softened sequentially for the month; this morning it noted that this softness continued throughout 3Q which, in turn, has led to heightened promotional activity on new RVs across the industry as dealers look to closely manage their inventories. ● Less bad, but still bad. Now the good news — if you want to call it that — is that (as per CWH) the rate of decline has eased a bit in August and September; according to SSI, registrations were down 20% for July and 15% YTD, and we should be getting data for August later this week. However, the pressure on margins has not abated to any meaningful degree, while higher oil prices and interest rates have certainly not helped the situation with respect to either demand or margins. ● Additional cost savings, looking to refi debt. As a result, CWH is accelerating its $100M cost savings initiatives and sees at least $50M in additional savings from further headcount reductions. This includes closing four dealerships, though two of these are expected to reopen at some point in the future. The company is also looking to refinance its term loan facility ($1.3B outstanding, matures in 2028), likely with a combination of new term loans and other senior secured debt."

For an analyst ratings summary and ratings history on Camping World Holdings click here. For more ratings news on Camping World Holdings click here.

Shares of Camping World Holdings closed at $5.03 yesterday.

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