StoneX cuts LCI Industries stock price target on volume concerns

StoneX reduced its price target for LCI Industries (LCI) shares from $125 to $110, while keeping a Buy rating on the stock. The current trading price sits at $79.14, just below its 52-week low of $77.58. Analyst Michael Albanese lowered fiscal 2026 and 2027 estimates for the company. The target adjustment is due to lower volume expectations, not margin concerns.

StoneX kept its operating margin projections close to LCI's guidance range of 7.5% to 8.0%. The firm also lowered its forecast for RV OEM sales. Suppliers are seen as the strongest segment within the RV value chain. LCI Industries is benefiting from cost reduction efforts and its aftermarket business, which keeps its profits relatively resilient.

The company's valuation is attractive, with a low P/E ratio of 9.16 and a PEG ratio of 0.21. Subscribers to InvestingPro get 13 extra tips on LCII, plus a detailed Pro Research Report on this and over 1,400 other US equities. The estimates, rating, and price target are independent of the pending PATK merger. Recently, LCI Industries reported adjusted earnings per share of $2.70, slightly below the estimated $2.72.

Revenue fell short at $1.06 billion compared to the expected $1.13 billion, but the year-over-year increase stood at 10% due to strong aftermarket performance. Self-help initiatives and content gains led to a 110 basis point increase in adjusted EBIT margin, reaching 9.3%. Jefferies also lowered its price target for LCI Industries from $125 to $120, maintaining a Hold rating, as a delayed RV market recovery was cited.

LCI Industries highlighted profitability improvements despite weaker RV and outdoor products demand. These updates emphasize the company's persistent challenges and growth opportunities in a volatile market.