Thor Industries is an attractive play in the growing recreational vehicle industry, according to Bank of America. Analyst Alexander Perry upgraded the Elkhart, Indiana, manufacturer of iconic Airstreams to buy from neutral and bumped his price target by 14%, or $15, to $125 from his previous $110. That new target suggests shares can jump more than 25% compared to Friday’s close. Thor gained 2.5% in early trading Monday. Perry sees Thor shares rebounding this year as the company expands its customer base and increases its shipments. “We see evidence of THO recapturing market share, especially at Camping World (CWH) which hit recent lows in 2024,” Perry wrote in a Monday note to clients. So far this year, Thor was able to reach sharper price points across towable contract manufacturing lines, with Perry estimating the company’s inventory at RV dealer Camping World increased significantly in December, supporting higher shipments in its fiscal second quarter that ended Jan. 31. Shares are up about 8% this year but are coming off a tough 2024, when the stock fell 19%, according to FactSet data. Thor slumped 14% in December after missing Wall Street estimates for fiscal first-quarter earnings and revenue, losing a net $1.8 million, hurt by a soft retail and wholesale environment. Management said then it anticipated a challenging second quarter but strong performance in the second half of its fiscal year ending July 31. THO 1Y mountain Thor Industries over the past year. Perry raised his earnings estimates on Thor, encouraged by improving RV sales trends and higher overall dealer optimism ahead of peak selling season, which typically occurs in late spring through summer months. “We see signs of green shoots in the overall RV industry including lean channel inventory levels, a recent lift in the value of used units and strong recent shipment data,” Perry said.
