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Why Camping World Stock Is Soaring Today

By Jon Quast - Mar 11, 2021 at 3:05PM

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One analyst says this stock still has 16% more upside even after soaring today.

What happened

Shares of Camping World Holdings (CWH -8.11%) were soaring on Thursday after the company got an upgrade from an analyst. Of course, it's hard to find a stock that's not up today. However, the upgrade likely contributed to its outsized performance. As of 2:30 p.m. EST, Camping World stock was up 13%.

So what

This morning, an analyst with BMO Capital upgraded their outlook for Camping World stock, according to The Fly. While BMO doesn't necessarily believe it will beat the market averages, their price target was raised from $35 per share to $50 per share. Even after spiking higher today, that still represents around 16% upside.

A dollar bill is folded into the shape of an upward arrow.

Image source: Getty Images.

Here's why BMO Capital raised its price target for Camping World stock: It believes the recreational-vehicle (RV) market is poised for good times as the pandemic passes. Furthermore, it says the stock is cheap. And finally, by acquiring smaller dealerships, the company can focus more and more on its higher-margin services business.

Now what

Speaking of acquisitions, Camping World announced the acquisition of two Utah-based RV dealerships yesterday. Terms of the deal weren't disclosed. However, it demonstrates BMO Capital's strategy of believing this value stock can continue to go up in value in the year to come.  

That said, Camping World stock will have a hard time matching its success over the past year. It's up almost 400% from where it was at this time in 2020. Of course, you don't need rapid multibaggers to build long-term wealth. Allowing companies to compound at a slower rate over a prolonged time horizon can still deliver stellar results in the long run.

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Camping World Holdings, Inc. Stock Quote
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