10:05 AM EDT, 03/21/2024 (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 target by $10 to $60, based on a FY 25 (Aug.) P/E of 8.0x, a discount to WGO's five-year mean forward P/E of 11.0x. We lower our adjusted EPS views to $5.45 from $6.80 for FY 24 and to $7.50 from $8.75 for FY 25. WGO posted Feb-Q adjusted EPS of $0.93 vs. $1.88 (-51%), above the $0.86 consensus. The beat was driven by stronger-than-expected margins, as revenue fell 19% to $704M ($7M short of consensus). Gross margin contracted 190 bps to 15.0% (10 bps above consensus). WGO's Towable RV sales were down 9% Y/Y, while Motorhome volumes were -16% and Boats were -32%. WGO introduced future mid-cycle organic growth targets, targeting net revenue of $4.5B-$5.0B and gross margins of 18.0%-18.5%, which seem ambitious from our standpoint. The reality is that its results are highly dependent on two factors: consumer discretionary spending and oil prices. With Y/Y results likely to remain challenged in the near term due to a higher-for-longer interest rate environment, we keep a Hold rating on WGO.