BancAmerica Robertson Stephens Initiates Coverage on National RV Holdings
12 December 1997
BancAmerica Robertson Stephens Initiates Coverage on National RV Holdings
SAN FRANCISCO, Dec. 12 -- BancAmerica Robertson Stephens
research analyst Jordan Hymowitz initiated coverage today on National R.V.
Holdings, Inc. With a Long Term Attractive rating, and a price
target of $36 per share.
National R.V. Holdings is the fifth-largest manufacturer of Class A
motorhomes, one of the fastest growing segments of the $6.3 billion
recreational vehicle (RV) market in the U.S. Class A motorhomes are the
largest and most luxurious recreational vehicles in the market.
Hymowitz believes "1998 will be a blowout year for National R.V. Holdings.
The company has increased its production capacity and product price points at
the same time as the demand for higher-end motorhomes is increasing."
Demographic trends for the business are also favorable: baby boomers are
reaching their prime RV buying ages (55-64) in increasing numbers, interest
rates and gas prices are at their lowest level in two decades and the economy
is strong.
"We also believe that RVs are increasingly viewed as status symbols and
are in vogue after being out of fashion for much of the 1980s," Hymowitz said.
High-end, luxurious Class A products, which comprise more than 90% of National
R.V.'s production, are in greatest demand.
Hymowitz believes the company's visible EPS upside is just beginning to be
reflected in its stock price. His 1997 and 1998 earnings estimates are
$1.95 and $2.40 respectively.
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