Skip to main content

Market Overview

KeyBanc Downgrades Camping World, Asks 'Where's The Profit?'

KeyBanc Downgrades Camping World, Asks 'Where's The Profit?'

The recreational vehicle market remains healthy, but KeyBanc's first hand-checks point to numerous concerning trends at Camping World Holdings Inc (NYSE: CWH)

The Analyst

KeyBanc's Brett Andress downgraded Camping World from Overweight to Sector Weight with no price target.

The Thesis

First-hand checks at multiple Gander Outdoors retail stores questions the "health and execution" of Camping World's business, Andress wrote in the note. Inventory of vehicles looked "illogical" and elevated across multiple product categories. Markdowns were also wide-spread, which limits any upside margin potential.

Meanwhile, Andress said Gander Mountain's overall RV sales based on SSI data look "tepid" with expectations for 125 new unit sales per store, or 200 for new and used units. Camping World's recent appointment of Peter Jelinek as of SVP of Merchandising and Product Development could help reverse a recent loss momentum but not until late fiscal 2020. The only near-term "quick fix" would come from a large-scale Gander restructuring.

Camping World's guidance of full year EBITDA of $320-$340 million looks "well out of reach" and expectations for the company to surpass fiscal 2017's peak gross margin of 29.1 percent is unrealistic. The analyst said the stock's risk-reward profile is now skewed modestly to the downside, especially if the RV cycle slows down over the longer term.

Price Action

Shares of Camping World were trading lower by 1.7 percent at $12.06 Friday morning.

Related Links:

Analyst: Camping World Could Have Near-Term Benefits From RV Production Slowdown

Camping World Analyst Downgrades RV Dealer After 'Challenging' Q1

Latest Ratings for CWH

Mar 2021BMO CapitalUpgradesMarket PerformOutperform
Nov 2020Credit SuisseMaintainsNeutral
Sep 2020JP MorganUpgradesNeutralOverweight

View More Analyst Ratings for CWH
View the Latest Analyst Ratings


Related Articles (CWH)

View Comments and Join the Discussion!

Posted-In: brett Andress KeyBanc Capital Markets RVAnalyst Color Downgrades Analyst Ratings Best of Benzinga

Latest Ratings

SVLake StreetInitiates Coverage On20.0
CLSDJMP SecuritiesMaintains9.0
WPCJP MorganUpgrades88.0
BRKRCleveland ResearchUpgrades
NTRRaymond JamesDowngrades82.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at