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Wall Street analysts maintained their somewhat neutral stance toward investing in the RV industry in the client newsletters they sent out following this week’s release of the May retail RV registration figures from Statistical Surveys Inc. (SSI).

SSI reported that May Class A registrations fell 51% to 928 units while Class C registrations dropped 52% to 781 units.  Class A diesel registrations fell 42% and Class A gas registrations fell 50%.

“Retail continues to outpace wholesale as dealers reduce motorhome inventory levels and manufacturers slow production. Conditions remain difficult, but we should see declines moderate as consumer confidence improves and comps become easier,” said Craig Kennison of Robert W. Baird Co.

The seasonally adjusted annual rate of retail registrations for May was 17,600 units, down from 23,800 units in April, he noted.

“While registrations were again down significantly, retail has remained higher than wholesale each of the past 13 months, suggesting inventory continues to come out of the channel,” he said.

Meanwhile, Kathryn Thompson of Thompson Research Group said in part, “May’s retail sales deterioration is consistent with dealer feedback that motorhome sales remain extremely challenging. As we have discussed in previous notes, we believe that Thor, Winnebago and Drew Industries will be the eventual survivors from this steep downturn. That said, Thor’s financial strength has enabled it to prosper relatively better than other competitors in the current environment.”

TRG recommended a “hold” position on these three publicly traded stocks.