Camping World shares soar on new outlook and goals

Camping World Holdings, Inc. (CWH 0.84%) ended the trading day with its shares up nearly 5% after a press release outlined its new outlook and targets for 2021. Two highlights of the recreational vehicle (RV) and equipment company’s projections campsites include plans to increase revenue per member by 10% over the next 36 months, and the forecast for adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to increase from $460 million to $490 million. million in 2020 to $500 million in 2021.

The company says it is working on business improvements on multiple fronts, including R&D investments in efforts to “create more efficient, responsible, lightweight, innovative and state-of-the-art recreational vehicles and accessories. “. The eco-friendly RV trend has continued to gain strength for at least a decade, while according to MarketWatch, COVID-19 could help drive RV sales up at a compound annual growth rate (CAGR) of 8. 6% through 2025. Camping World’s efforts to develop new, “greener” RVs could potentially fit profitably into both of these trends.

Spring 2021 will also see the launch of a Camping World motorhome rental marketplace, usable by its “Good Sam” members, which number around 2.1 million people, according to the company. The marketplace will operate on a peer-to-peer basis. Camping World says it thinks easily accessible rentals will drive more interest in its motorhomes, likely by allowing potential buyers to rent a motorhome and try out the concept before making a purchase.

Camping World has already seen its stock soar this year, including 10% same day earnings last week after receiving an “overweight” rating from a JP Morgan analyst. While its shares historically climbed in late 2017 and early 2018, the motorhome company’s stock value rose sharply in mid-July and still occupies a range that is the highest of the past 12. month.