Shares of recreational vehicles and associated products provider Camping World (NYSE:CWH) are tanking today after the company announced that it is exploring potential strategic alternatives for its Good Sam business.
A potential M & A transaction for the unit could involve a sale, spin-off, or other disposition. The company noted that a final decision on whether to proceed with any of the alternatives is yet to be chalked out, and a deadline for the review process has not been set.
Camping World began the 2024 year with the acquisition of Ashley Outdoor. At the time, the company outlined plans to add 15 dealership locations in the first quarter of 2024. Since then, it has announced the acquisition of eight more locations across Minnesota, Louisiana, Texas, and Oklahoma.
Camping World is the largest retailer of recreational vehicles globally and aims to increase its dealership count to over 320 locations in the next five years. Separately, Camping World’s fourth-quarter results are coming up on February 20. Analysts expect the company to post an EPS of -$0.53 on revenue of $1.14 billion for the quarter. In the comparable year-ago period, Camping World’s EPS of -$0.20 had missed estimates by $0.22.
What is the Price Target for CWH?
Overall, the Street has a Strong Buy consensus rating on Camping World. Following a nearly 24% decline in the company’s share price over the past six months, the average CWH price target of $28.33 implies a potential upside of 16.7% in the stock.
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