Winnebago Industries: Internal Improvements, Conservative Guidance, and Attractive Valuation Support Buy Rating

Benchmark Co. analyst Michael Albanese has maintained their bullish stance on WGO stock, giving a Buy rating today.Michael Albanese has given his Buy rating due to a combination of factors tied to Winnebago’s recent performance and outlook. He highlights that the company delivered quarterly results that surpassed market expectations on sales, profitability, and earnings, and modestly raised its guidance for fiscal 2026, which was immediately reflected in a double‑digit percentage move in the stock. Management’s outlook for RV shipments has improved for calendar 2025, and although near‑term growth in Towable and Motor segments is expected to be modest and Marine to decline, the guidance is viewed as achievable and appropriately conservative. Albanese also emphasizes that the company’s internal improvement efforts are increasingly driving results, with new product introductions, brand refreshes, facility consolidation, leadership changes, and cost actions contributing meaningfully to margin expansion even before the broader industry cycle has turned. He notes strengthening fundamentals in the balance sheet and working capital, including better inventory turns, lower receivables, and positive operating cash flow with significantly higher EBITDA margins. From a valuation standpoint, he views the current trading multiples as attractive versus his forecasts and indicates that his $48 price target, informed by both a multiples framework and a DCF that blend near‑term and mid‑cycle assumptions, implies reasonable upside as margins and earnings continue to improve.In another report released today, Citi also maintained a Buy rating on the stock with a $51.00 price target.