Analyst Wes Cummins of Southern California investment firm B. Riley & Co. reinitiated coverage of National RV Holdings Inc. as a “buy” rating with a target price set to $10.
In a research note dated Aug. 16 and published yesterday (Aug. 17), the analyst mentions that the current valuation of National RV’s stock is attractive, despite the challenges the company is facing.
Perris, Calif.-based National RV Holdings, parent to motorhome builders Country Coach Inc. and National RV, has recently secured a larger credit facility, easing the near-term liquidity concerns, the analyst says.
Country Coach’s sustained profitability is insulating the company against rising fuel prices and interest rates, B. Riley & Co. adds.
In a preliminary earnings statement issued Tuesday, National RV Holdings reported a second-quarter loss, reversing a year-earlier profit, as an increase in sales incentives and overhead costs outweighed higher sales.
The company also said it is restating financial results from prior years to correct accounting errors.
National RV Holdings ended today’s trading at $6.19, up 21 cents.