TLDR
- Truist lowered THOR’s price target to $90 from $110 while maintaining a Hold rating
- THOR cut FY 2025 guidance to $3.30-$4.00 EPS vs consensus of $4.48
- Stock trading at $95.08, down 4.6% on the news
- Company maintains quarterly dividend of $0.50 per share (2.10% yield)
- Analysts split on outlook with 4 holds and 4 buys, average target price of $114
THOR Industries, the recreational vehicle manufacturer, has seen its stock come under pressure following disappointing quarterly results and reduced annual guidance. The company’s shares fell 4.6% to $95.08 after it announced lower expectations for the fiscal year.
Truist Financial has lowered its price target on THOR Industries (THO) from $110 to $90 while maintaining a Hold rating on the stock. This adjustment comes after THOR’s second-quarter earnings missed expectations.
The downgrade reflects growing concern about the pace of THOR’s earnings recovery for fiscal years 2025 and 2026. Truist analysts noted that while expectations before the announcement were not particularly high, the company’s commentary reinforced their cautious outlook.
Despite the reduced price target, Truist acknowledged the stock is not expensive at 7.5 times expected FY25 EBITDA. However, the firm indicated it would need to see a significant non-macroeconomic catalyst before taking a more positive view on the stock.
THOR Industries has updated its fiscal year 2025 guidance, now projecting earnings per share between $3.30 and $4.00. This range falls below the consensus analyst estimate of $4.48 per share.
The company also adjusted its revenue forecast to between $9.0 billion and $9.5 billion. The consensus revenue estimate was previously set at $9.4 billion, placing the new guidance range slightly below market expectations.
THOR currently has a market capitalization of approximately $5.06 billion. Its price-to-earnings ratio stands at 24.32, with a PEG ratio of 1.16 and a beta of 1.69.
The RV manufacturer’s stock has shown volatility in recent months. It has a 52-week low of $88.37 and a 52-week high of $127.80.
The company’s two-hundred day moving average price is $104.25, while its more recent fifty-day moving average is $99.82. Both figures sit above the current trading price, indicating a downward trend.
THOR Industries continues to pay a quarterly dividend of $0.50 per share. This represents an annual dividend of $2.00 and a yield of 2.10% at current prices.
The most recent dividend payment was made on January 17th to stockholders of record as of January 6th. The company’s dividend payout ratio currently stands at 51.15%.
Analysts remain divided on stock
Analyst opinions on THOR remain divided. Bank of America recently upgraded the stock from neutral to buy, raising its price target from $110 to $125.
This upgrade contrasts with Truist’s more cautious stance. Overall, THOR currently has four hold ratings and four buy ratings among analysts, resulting in a consensus rating of “Moderate Buy.”
The average analyst price target for THOR Industries is $114, suggesting potential upside from current levels despite the recent guidance cut.
THOR Industries designs, manufactures, and sells recreational vehicles and related parts and accessories across the United States, Canada, and Europe. Its product lineup includes travel trailers, gasoline and diesel motorhomes across multiple classes, conventional and luxury fifth wheels, and various camping vehicles.
The company operates in a cyclical industry that can be sensitive to broader economic conditions and consumer confidence. The reduced guidance may reflect ongoing challenges in the RV market as consumers adjust their spending patterns.
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