Citi Maintains Buy Rating on Camping World Holdings with $21 Price Target

Citi analyst James Hardiman maintains a Buy rating on Camping World Holdings with a price target of $21.00, citing the company's strong earnings report. The analyst consensus is a Strong Buy with an average price target of $18.94, representing a 23.07% upside. Hardiman has an average return of 8.8% and a 48.29% success rate on recommended stocks.

Citi analyst James Hardiman has maintained a Buy rating on Camping World Holdings (NYSE:CWH), with a price target of $21.00, following the company's robust second-quarter earnings report. The analyst consensus is a Strong Buy with an average price target of $18.94, representing a 23.07% upside. Hardiman's track record includes an average return of 8.8% and a 48.29% success rate on recommended stocks [2].

Camping World reported revenue of $1.98 billion for the second quarter, beating analyst estimates of $1.88 billion by 9.4% year-on-year. However, the company's adjusted earnings per share (EPS) of $0.57 missed analyst expectations of $0.60 by 4.8%. The company attributed strong top-line growth to record RV unit sales and increased finance and insurance (F&I) revenue, despite challenging macroeconomic conditions and tariffs. CEO Marcus Lemonis highlighted the company's focus on driving transaction volume and customer acquisition, even as it continued consolidating locations and reducing headcount to enhance efficiency [1].

Hardiman's positive outlook is based on the company's strong revenue growth and the potential for margin expansion. The analyst expects Camping World to sustain used RV sales growth as inventory levels rise, and to make progress on SG&A cost reductions and further store consolidation. Additionally, Hardiman believes the company's focus on maximizing returns from existing stores and its expansion of the Good Sam platform will be critical to achieving profitability targets.

Camping World currently trades at $16.50, down from $17.63 just before the earnings. The company's stock price has been volatile, with significant price movements in the past year. However, Hardiman's price target of $21.00 suggests that he sees value in the company's long-term prospects.

References:

[1] https://finance.yahoo.com/news/camping-world-petco-tillys-american-214546241.html

[2] https://finance.yahoo.com/news/5-most-interesting-analyst-questions-030622935.html