What Happened?
Shares of recreational vehicle (RV) and boat retailer Camping World (NYSE: CWH) jumped 3.2% in the morning session after an analyst at Keybanc raised the price target on the stock. Keybanc analyst Noah Zatzkin increased the firm's price target on the recreational vehicle retailer to $21 from $18, while keeping an "Overweight" rating. The move came after meetings with Camping World's management, which left the analyst "incrementally positive" on the company's medium and long-term growth opportunities.
After the initial pop the shares cooled down to $17.29, down 0.7% from previous close.
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What Is The Market Telling Us
Camping World’s shares are extremely volatile and have had 35 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was about 23 hours ago when the stock dropped 3.2% on the news that a hotter-than-expected wholesale inflation report fueled concerns about slowing consumer spending. The market was rattled by a Labor Department report showing the Producer Price Index (PPI), a measure of wholesale inflation, jumped 0.9% in July, significantly exceeding economists' expectations of a 0.2% rise. This was the largest monthly increase since March 2022, reigniting worries that businesses will be forced to pass higher costs on to consumers, who are already showing signs of price sensitivity. This inflation data has fanned concerns that U.S. tariffs on imported goods could start to translate into higher prices for shoppers. The inflation report landed amid growing evidence of consumer caution, with recent reports highlighting that shoppers are cutting back on non-essential spending, seeking out sales, and trading down to cheaper brands.
Camping World is down 16.1% since the beginning of the year, and at $17.29 per share, it is trading 31.3% below its 52-week high of $25.19 from September 2024. Investors who bought $1,000 worth of Camping World’s shares 5 years ago would now be looking at an investment worth $487.86.
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