Winnebago price target lowered to $59 from $70 at Roth MKM

Roth MKM lowered the firm’s price target on Winnebago to $59 from $70 and keeps a Neutral rating on the shares after its Q3 earnings miss. Winnebago should be among the first OEMs to come out of the current RV recession, but there is still no sign of a bottom for RV retail demand, and now, with aged FY23/FY24 inventory in the channel putting the timing of the FY25 model-year changeover in question, there is risk to the company’s business for the rest of 2024 and into 2025, the analyst tells investors in a research note. Winnebago has acknowledged that it overshot FY24 production for both the towable and motorized RV product by a bit, with some finished goods sitting on Winnebago’s own lots, and its management is now thinking that weak dealer orders trends will persist for the balance of calendar 2024, Roth MKM added.