Shares of recreational vehicle maker Thor Industries (THO) have surged past our $98 price target to close yesterday at $109, with a 62% overall gain including dividends since our initial Buy recommendation last November at $67.60.
Despite a nerve-rattling 50% drop at the worst of the pandemic sell-off in March, the shares have regained favor with investors. The company’s efforts to reduce its excess inventory, combined with cost discipline, growing demand for ‘social distance’ outdoor activities and an emerging “work from anywhere” trend, have all helped drive up Thor’s share price. The shares are now fully valued on optimistic 2022 earnings.
We move THO shares to a Sell with a 62% profit including dividends.
Disclosure Note: One or more employees of the Publisher own shares of all Turnaround Letter recommended stocks, including the stocks mentioned in this note.