Lazydays Holdings (NASDAQ:LAZY) was initiated at a Neutral rating by DA Davidson on Wednesday, largely due to industry-wide issues hampering upside for the stock.
Equity analyst Brandon Rolle indicated that RV dealership M&A opportunities look attractive for the company, a lever it could pull for growth. However, the broader picture of the RV industry leaves share daily valued at this point, in Rolle’s view.
“We are cautious on the name due to concerns surrounding the trajectory of Recreational Vehicle industry retail sales over the next 6-12 months, given the elevated interest rate environment and affordability issues that have yet to be addressed,” he explained. “We would not hesitate to get more constructive on the company given evidence of improving RV retail trends and incremental margin stabilization.”
Lazydays (LAZY) stock slipped 1.5% in midday trading on Wednesday.
Read more on the company’s recent acquisition of Findlay RV.