JPMorgan upgrades Camping World on ‘overreaction’ to Q1 report

JPMorgan upgraded Camping World (CWH) to Overweight from Neutral with a price target of $21, down from $23. The shares declined 14% yesterday post earnings, an “overreaction” to a softer trend to Q1 average selling prices despite numerous other aspects of the company’s performance indicating the beginning stages of an expected “sharp profit pivot,” the analyst tells investors in a research note. JPMorgan says Camping World’s EBITDA rose nearly four-old from $8M a year ago to $31M in Q1, marking only the second sequential quarter of higher year-over-year EBITDA. Camping World’s expected profit inflection comes after a “long 11 quarter stretch” of lower year-over-year EBITDA, contends JPMorgan.