Raymond James reiterates Camping World stock rating amid guidance miss

Raymond James has maintained an "Outperform" rating and an $8.25 price target for Camping World Holdings (NYSE:CWH) stock, despite the company announcing it expects to fall short of its fiscal 2026 guidance. As of now, the stock is priced at $4.46, marking a 48% decline year-to-date and nearing its 52-week low. However, InvestingPro's analysis indicates the shares could potentially be undervalued at their current levels.

Camping World revealed that adjusted EBITDA will fall below the low end of its present guidance range, which is $230 million to $270 million. The company's predicament is attributed to persistent macroeconomic and demand uncertainty that is impacting the RV industry. EBITDA generated by Camping World over the past year amounted to $251.56 million. The company's sales team experienced a decline in unit demand in July, and this weakness persisted throughout the third quarter.

The unfavorable conditions have led to increased promotional activities on new RVs as dealerships manage inventories. Although the rate of decline in the third quarter slowed down, profit margins remain under pressure due to higher oil prices and interest rates.

In an effort to cut costs, Camping World is ramping up its $100 million cost-saving initiative, anticipating at least $50 million in additional savings through further headcount reductions. The company also plans to close four dealerships, with two potentially reopening in the future, and is exploring refinance options for its $1.3 billion term loan facility, which is set to mature in 2028.

For a more in-depth analysis of the situation, a comprehensive Pro Research Report is available on InvestingPro, which covers this and 1,400+ other US equities.

Recently, Camping World Holdings reported second-quarter revenue of $1.93 billion, falling short of Wall Street's expectations of $2.01 billion. Nonetheless, the company met analysts' forecasts with adjusted earnings per share of $0.57. Citi has revised its financial estimates for Camping World, citing ongoing challenges within the recreational vehicle market.

They lowered their fiscal 2026 EBITDA estimate by $8 million to $230 million and further reduced their fiscal 2027 and 2028 projections by $25 million and $32 million, respectively. In addition, BofA Securities cut its price target for Camping World Holdings to $14 from $17, retaining a "Buy" rating. This revision is prompted by concerns over the weakening new recreational vehicle market, which experienced a 17% drop in second-quarter retail registrations.

These developments underscore the difficulties Camping World is encountering in the current RV market landscape.