Shares of recreational vehicle makers fell Wednesday after an analyst voiced some concerns about the sector’s May shipments, the Associated Press reports
RBC Capital Markets analyst Edward Aaron said in a client note that strong increases in towable shipments indicate that dealers are raising their exposure to towables, despite slowing retail trends.
Towable shipments are up 36% over last year, while motorhome shipments are down four percent. However, Aaron said that dealers may be “ordering product too aggressively.”
Aaron noted Thor Industries Inc.’s strong May shipments and high backlog, saying the company may have a strong fourth quarter. However, he noted “If we are correct in our view that end market demand for towables is softening, we believe dealers may slow their orders just as Thor comes up against very difficult comparisons (hurricane-related) in the back half of the calendar year.”
Shares of Thor fell 88 cents to $47.73 in morning trading on the Nasdaq.
Elsewhere in the sector, shares of Coachmen Industries Inc. dropped 28 cents, or 2.4%, to $11.33 on the New York Stock Exchange. Fleetwood Enterprises Inc. shares lost 18 cents, or 2.4 percent, to $7.38 on the NYSE, while Winnebago Industries Inc. shares dropped 44 cents to $30.45 on the Big Board.