Camping World Shares Climb On Crain RV Acquisition: 'Presents A More Compelling Entry Point For Investors'

Shares of Camping World Holdings Inc CWH were rising on Monday, after the company announced it had closed the acquisition of assets and real estate of Crain RV.

The pullback after the company’s second-quarter results, combined with “de-risked” expectations for the second half of the year, a dividend cut and upside to 2024 Street estimates, “presents a more compelling entry point for investors,” according to Truist Securities.

The Camping World Analyst: Michael Swartz upgraded the rating for Camping World from Hold to Buy, while raising the price target from $28 to $35.

The Camping World Thesis: The company’s accelerated MY23 clearance efforts in the back half of 2023 should result in healthier margins and market share in 2024, Swartz said in the upgrade note.

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“In addition to easier comparisons (and signs of bottoming demand in recent months), CWH should benefit from a much healthier mix of new inventory, market share recovery (particularly as we lap the heaviest discounting periods of '22) and the strategic expansion of pre-owned and private label RVs (we est. ~65% of consolidated RV volume), where there is less inherent pricing pressure, in our view,” the analyst wrote.

CWH Price Action: Shares of Camping World were up 3.7% to $28.46 at the time of publication Monday.

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