Truist downgrades LCI Industries to Hold on RV headwinds

Truist downgraded LCI Industries to Hold from Buy with a price target of $110, down from $140. The analyst continues to expect material earnings recovery over the next 12-24 months but now sees increasing risk to consensus expectations in 2024 and 2025 given mounting towable recreational vehicle content and market share headwinds. Following recent conversations with a range of recreational vehicle makers and suppliers, the firm sees increased near-term risk to content loads, organic growth and the potential for a “muted” earnings recovery in 2024 and 2025. Truist believes LCO shares do not appear to fully reflect these potential risks.