What Happened?
Shares of recreational vehicle (RV) and boat retailer Camping World (NYSE:CWH) jumped 6.4% in the afternoon session after Loop Capital initiated coverage on the company with a "Buy" rating and set a price target of $17.00. The price target represented a potential upside of approximately 37% from the stock's trading price at the time of the announcement. The research firm viewed the stock's recent pullback as an attractive entry point for investors. The positive assessment from analyst Brandon Rolle provided a boost to investor confidence in the recreational vehicle retailer.
The shares closed the day at $13.14, up 5.8% from previous close.
Is now the time to buy Camping World? Access our full analysis report here.
What Is The Market Telling Us
Camping World’s shares are extremely volatile and have had 33 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock dropped 20% on the news that the company's third-quarter 2025 results, as investors looked past headline beats on revenue and profit to focus on underlying weaknesses in the business. The recreational vehicle retailer reported revenue of $1.81 billion, up 4.7% year-over-year, and an adjusted profit of $0.43 per share, both of which topped Wall Street's expectations. However, the report also highlighted several concerns that likely spooked the market. The company’s free cash flow margin fell sharply to 5.8% from 17.7% in the same quarter last year, and its gross margin missed analyst estimates. Furthermore, investors may have been cautious due to Camping World’s weak balance sheet, which carried significant debt of $2.42 billion against only $230.5 million in cash. The positive headline numbers were not enough to outweigh these deeper operational and financial concerns.
Camping World is down 35.7% since the beginning of the year, and at $13.25 per share, it is trading 47.3% below its 52-week high of $25.14 from November 2024. Investors who bought $1,000 worth of Camping World’s shares 5 years ago would now be looking at an investment worth $486.24.
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