Loop Capital has initiated coverage on Thor Industries with a “Hold” recommendation, setting a price target of $110 per share. This valuation falls notably below the most optimistic analyst projection of $129. Despite shares advancing more than 50% over the past six months, the investment bank considers the company’s fiscal 2026 earnings targets to be achievable.
Robust Quarterly Performance
The company’s most recent quarterly report delivered a significant earnings surprise. Adjusted earnings per share reached $2.36, dramatically surpassing consensus estimates of $1.25. Revenue hit $2.52 billion, also exceeding expectations. While sales saw a marginal decline of 0.4% compared to the same period last year, net income surged 39.7% to $125.8 million.
Key financial highlights for fiscal 2025 demonstrate underlying strength:
* North American motorized RV revenue increased 7.8% to $557.4 million
* Unit deliveries rose 15.9%
* Operating cash flow totaled $577.9 million
* $237 million allocated to debt reduction
* $158.8 million returned to shareholders through distributions
Cautious Outlook for Fiscal 2026
Looking ahead, Thor Industries projects consolidated net sales between $9.0 and $9.5 billion for fiscal 2026. Earnings per share are anticipated to range from $3.75 to $4.25. However, management’s assumptions remain conservative, anticipating a slight decline in North American retail sales while expecting market share to remain stable.
Should investors sell immediately? Or is it worth buying Thor Industries?
Seth Woolf, Head of Corporate Development & Investor Relations, cautioned that the company faces “another challenging year,” pointing to “multiple data points indicating labor market softness” as contributing factors.
Analyst Sentiment Remains Measured
Other financial institutions have expressed similar reservations about the stock’s near-term prospects. While Raymond James upgraded Thor Industries to “Market Perform” on October 27, the firm maintains a cautious stance. DA Davidson raised its price target to $102, noting “early signs of recovery,” while Benchmark continues to rate the shares as “Hold,” anticipating a weak start to fiscal 2026 due to challenges in European markets.
The critical question for investors is whether the stock’s impressive rally can be sustained. With analysts delivering mixed signals and macroeconomic uncertainties persisting, the path forward appears uncertain despite the company’s solid operational performance.
Ad
Thor Industries Stock: Buy or Sell?! New Thor Industries Analysis from October 31 delivers the answer:
The latest Thor Industries figures speak for themselves: Urgent action needed for Thor Industries investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from October 31.
Thor Industries: Buy or sell? Read more here...
