Shares of RV and trailer maker Thor Industries Inc. (THO - Get Report) dropped 0.9% on Monday after an analyst at BMO Securities downgraded the company's shares to "market perform" from "outperform" and lowered his price target to $62 from $78.
Thor shares slipped to $63.34 on the New York Stock Exchange after BMO Capital analyst Gerrick Johnson issued the downgrade, citing concerns about the company's recent $2.5 billion acquisition of Erwin Hymer Group, which closed on Friday.
Johnson also expressed concern over the outlook for the RV industry generally, as well as the company's $2.6 billion in debt resulting from the Erwin Hymer transaction.
While the company expressed optimism over its 2019 outlook in its most recent earnings report, investors did not share the same enthusiasm, sending the stock tumbling. Thor will release its most recent quarterly results early next month.
Based in Elkhart, Indiana, Thor designs, manufactures, and sells recreational vehicles (RVs), and related parts and accessories primarily in the U.S. and Canada. It operates in two segments: Towable Recreational Vehicles and Motorized Recreational Vehicles.
The company offers travel trailers under the Airstream Classic, Tommy Bahama, Flying Cloud, Basecamp and Nest travel trade names, as well as motor homes under the Four Winds, Freedom Elite, Majestic, Hurricane, Chateau, Windsport and A.C.E. trade names.