08:00 AM EDT, 06/05/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month price target by $10 to $90, based on 12.5x our FY 25 (Jul.) EPS estimate, a justified discount to THO's mean 10-year forward P/E of 13.7x. We lower our adjusted EPS estimates to $4.60 from $5.30 for FY 24 and to $7.20 from $8.00 for FY 25. THO posts Apr-Q EPS of $2.13 vs. $2.24 (-5%), well ahead of the $1.85 consensus. The beat was driven by stronger-than-expected revenue and margins, as net sales fell 4% to $2.80B ($70M ahead of consensus) and gross margin expanded 30 bps to 15.1% (50 bps ahead of consensus). However, despite the sizable beat, THO lowered FY 24 net sales and EPS guidance to $9.8B-$10.1B and $4.50-$4.75 from $10.0B-$10.5B and $5.00-$5.50, respectively (current consensus = $10.17B and $5.14), as management stated that the prolonged market downturn has persisted longer than they and others anticipated. We maintain a Hold opinion on the shares, as the negative impact of a higher-for-longer interest rate environment on RV sales is likely to persist well into 2025.