08:40 AM EDT, 06/20/2024 (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 $50, based on a FY 25 (Aug.) P/E of 8x, a discount to WGO's 5-year mean forward P/E of 11.1x. We lower our adjusted EPS estimates to $4.55 from $5.45 for FY 24 and to $6.25 from $7.50 for FY 25. WGO posts May-Q adjusted EPS of $1.13 vs. $2.13 (-47%), well short of the $1.31 consensus. The miss was driven by weaker-than-expected sales and margins, as revenue fell 13% to $786M ($12M short of consensus) and gross margin contracted 180 bps to 15.0% (20 bps below consensus). WGO's Towable RV sales were +6% Y/Y, while Motorhome volumes were -21% and Boats were -29%. Clearly, higher interest rates are weighing on sales, as the company's RV and boat products are on the "highly discretionary" end of the consumer discretionary spectrum. We lower our estimates, expecting the rebound in sales and earnings to be highly dependent on the timing and magnitude of rate cuts. Shares are trading 4% lower in the pre-market, as WGO appears poised to hit a new 52-week low.