Baird: Camping World Has Work To Do To Regain Credibility

Camping World Holdings Inc CWH has announced leadership changes as part of a broader realignment initiative.

While investors may see the changes as a positive given the company’s weak performance in 2018, the RV retailer still has a long way to go, according to Baird.

The Analyst

Analyst Craig R. Kennison maintains an Outperform rating on Camping World with an unchanged $24 price target. 

The Thesis

Camping World named Brent Moody as president in September.

Moody has been replaced by CFO Tom Wolfe as president of Good Sam, while Melvin Flanigan has been named CFO.

The resignation of Roger Nuttall as president of the company's dealership group was disclosed in late December. 

The company said CEO Marcus Lemonis’ involvement in dealership operations will increase.

Camping World’s share price has been under pressure due to weakness in the RV sector and credibility issues with institutional investors. The company refrained from commenting on retail or inventory trends while announcing management changes.

This suggests conditions have not improved, Kennison said in a note. 

Demand has softened in recent months and dealers are still working down inventory, the analyst said.

Baird’s estimates remain at the low end of consensus expectations, reflecting a “decline-and-destock scenario for 2019." 

Price Action

Camping World shares were down 3.6 percent at $12.33 at the time of publication Thursday. 

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Camping World CEO Marcus Lemonis. Photo by Dustin Blitchok.