Camping World climbs as brokerage BMO turns bullish on sales, margin upside

Camping World Holdings

24/05/2023 17:23

** Shares of recreational vehicle (RV) dealer Camping World
Holdings Inc  CWH.N  rise as much as 5.2% to hit a near 6-month
high of $27.68; last up ~3%
    ** Brokerage BMO Capital Markets upgrades stock to
"outperform" from "market perform", saying lower RV production
levels to benefit CWH
    ** With RV inventory levels significantly lower, CWH's used
RV sales and new RV margins would benefit during the peak summer
selling months, BMO says
    ** Low RV production will allow CWH to work through excess
inventory at better pricing with less discounting, analyst
Gerrick Johnson says
    ** "Overall desire for RVs remains steady, but demand has
been hampered by affordability concerns, making used (RVs) an
attractive option" - Johnson
    ** BMO also lifts PT on CWH stock to $35 from $26
    ** Seven of 11 brokerages rate the stock "buy" or higher and
the rest "hold"; median PT is $28 - Refinitiv
    ** YTD, stock up ~21% 

 (Reporting by Deborah Sophia in Bengaluru)
 ((DeborahMary.Sophia@thomsonreuters.com))