Winnebago's Near-Term Challenges: Analyst Highlights Soft Retail Demand Amid Weak Order Trends
Portfolio Pulse from Nabaparna Bhattacharya
BMO Capital Markets analyst Tristan M. Thomas-Martin has reiterated the Outperform rating on Winnebago Industries, Inc. (NYSE:WGO), but lowered the price target to $80 from $85. This follows a Q4 FY23 sales decline of 34.6% Y/Y to $771.0 million, missing the consensus of $784.33 million. The analyst highlights short-term headwinds, mainly soft retail demand, and weak ordering. However, Winnebago's Grand Design brand is set to release a new motorized RV, which is expected to generate a $10 million-$15 million headwind in 2024.
October 19, 2023 | 5:35 pm
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Winnebago Industries faces short-term headwinds due to soft retail demand and weak ordering. However, the release of a new motorized RV by its Grand Design brand could generate a $10 million-$15 million headwind in 2024.
The lowered price target and sales decline indicate potential short-term challenges for Winnebago Industries. However, the release of a new product could generate additional revenue, potentially offsetting some of these challenges.
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