Camping World Snaps Up Hilmerson RV; Street Sees 25.5% Upside


RVs and related equipment and services provider Camping World Holdings (CWH) has expanded its footprint in Minnesota by agreeing to acquire Hilmerson RV in Little Falls.

Camping World expects the transaction to close in early summer 2021.

Camping World CEO and Chairman Marcus Lemonis said, “With a history of top-notch customer service for over 37 years, Hilmerson RV is one of the best dealerships in America. I have been in this business for almost 20 years and this team simply runs one of the strongest operations I have ever seen.” (See Camping World stock analysis on TipRanks)

This facility in Little Falls will be Camping World’s 11th location in Minnesota. Upon transitioning to the Camping World brand, it will offer a range of new and used RVs, along with RV and outdoor products.

Notably, Camping World presently has dealerships, agreements to acquire dealerships, pending land acquisitions and facilities under construction in 45 states.

On May 5, Truist Financial analyst Michael Swartz reiterated a Buy rating on the stock and raised the price target to $56 (22.5% upside potential) from $42.

On the back of higher demand for RVs, Camping World’s Q1 revenue jumped 51.5% year-on-year to $1.56 billion and beat analysts’ estimates by $250 million. Non-GAAP earnings per share were $1.40 and ahead of consensus forecasts by $0.66.

Swartz noted Camping World’s “strong” Q1 performance, and thinks the stock is a “compelling investment idea,” noting its scale, available resources and M&A advantages.

Consensus on the Street is that Camping World is a Strong Buy based on 4 Buys and 1 Hold. The average analyst price target of $57.40 implies 25.5% upside potential. That’s after the stock has seen a surge of about 400.2% over the past year.

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