CWH Stock Forecast & Price Target

Camping World Holdings Inc. has demonstrated strong financial performance with substantial year-over-year increases in new RV unit sales, achieving a 28.8% growth rate, which is significantly higher than industry expectations. The company is optimistic about its used RV segment as it anticipates volume growth exceeding low double digits in 2025, supported by stabilizing market pricing and an influx of inventory. Additionally, the management's positive outlook is reflected in the increased FY24 adjusted EBITDA estimate of $177.1 million, indicating a successful trajectory despite challenging industry conditions.

Camping World Holdings Inc. has significantly downgraded its earnings before interest, taxes, depreciation, and amortization (EBITDA) estimate from $396.8 million to $332.7 million, reflecting a reduced margin from 6.8% to 5.2%, primarily due to anticipated declines in sales and increased selling, general, and administrative expenses as a percentage of gross profit. The company experienced a pronounced 24.2% decline in used RV sales alongside a 17.9% drop in unit sales, compounded by lower average pricing that fell by 7.7%, indicating the necessity for discounting as a reaction to reduced market values. Furthermore, the overall revenue from products, services, and attachments has decreased, highlighting operational challenges tied to the exit from certain product categories and a markedly weaker performance in the used RV segment, which underscores ongoing financial pressures for the company.