Merrill Lynch analyst Robert Curran today (Dec. 4) downgraded the stock of Fleetwood Enterprises Inc. to long-term accumulate from buy.
Fleetwood shares declined 5/16, or 2.5%, to close at 12 3/16 in New York Stock Exchange trading today.
Curran described Fleetwood’s second fiscal quarter earnings report, released last Thursday (Nov. 30), as “very weak.”
Fleetwood lost $3.4 million during the three months ended Oct. 29 and it has lost a total of $34.5 million during the six months ended Oct. 29.
Recent surveys suggest consumer confidence is eroding, which would slow the RV industry’s recovery, according to Curran.
Meanwhile, the manufactured home industry, which accounts for about half of Fleetwood’s sales revenue, continues to be plagued by excess inventories and less available credit, he said.