David Ristau
Growth at reasonable price, research analyst, newsletter provider, long/short equity

Winnebago Industries: Plans for Revenue Diversification Put Future Growth in Question

Winnebago Industries (NYSE:WGO) is a popular name in the recreational vehicle (RV) industry, best known for its motor homes since 1958. The recent economic downturn exposed the company's dependence on a single product for revenue, as company sales took a beating during the recession. Nevertheless, current shares have appreciated 75% in value year to date, fueled by strong sales, a rebounding economy and positive consumer sentiment. Factoring in current valuations, catalysts and impediments, we rate WGO as a Hold, with a $31 price target. Currently, WGO is looking to diversify its product lineup by expanding in the market for towable trailers and mid-sized commercial buses, but it will be a difficult task to stay competitive among the more...

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