RV Maker Winnebago Announces 8.6 Million Dollar Quarterly Loss

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MKM Partners went into reverse on Winnebago Industries (NYSE:WGO) on Tuesday with a downgrade to a Neutral rating from Buy.

Analyst Scott Stember and team think WGO shares have little upside potential in the current macro backdrop.

“Taking a step back, the stock is up a modest 6%-7% since we launched coverage with a Buy rating on May 4th, noting that industry conditions have since worsened given runaway inflation, the subsequent surge in interest rates, and a longer than expected timeline for the needed reduction in industry towable RV production.”

WGO managed to see gross margin expand 100 basis points in the first quarter despite inflation and supply chain pressures, but with volume growth slowing there is raised concerns on profitability in the quarters ahead.

Shares of WGO fell 1.70% in premarket trading on Tuesday to $61.99.

Wall Street analyst scorecard: 8 Buy-equivalent ratings, 4 Hold-equivalent ratings, and no Sell-equivalent ratings.

Image and article originally from seekingalpha.com. Read the original article here.

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