Wall Street Predicts This Stock Will Gain 25% In 12 Months

Thor Industries (NYSE: THO | THO Price Prediction) stock closed Monday trading below $100, but one analyst thinks it could be worth a lot more than that.

Upgrading Thor from neutral to buy on Monday, Bank of America Securities analyst Alex Perry assigned a new and improved $125 price target to the $100 stock, essentially predicting the shares will gain 25% over the next 12 months.

Perry’s note comes out ahead of Thor’s fiscal Q2 2025 earnings report, which is due out Wednesday, March 5. Most analysts on Wall Street have the recreational vehicle manufacturer pegged for a big earnings decline, with Q2 profits expected to be about $0.06 per share. Earnings for all of fiscal 2025, too, are expected to slump relative to fiscal 2024, with the consensus being that Thor will earn $4.48 this year on sales of about $9.4 billion.

That’s not necessarily how things will play out, however.

Thor scored “higher shipments in F2Q,” argues Perry, and has the potential to gain market share with large customers such as Camping World Holdings (NYSE: CWH), reversing share declines in 2024. The analyst sees especial strength in Thor’s towable manufacturing lines, saying he believes Thor has been able to “hit sharper price points” there.

Perry also sees this strength continuing into next year. Other Street analysts look ahead to 2026 and see Thor earning about $6.10. Perry, though, thinks that number’s too conservative, and predicts Thor will earn $6.90 next year, a 54% increase from the consensus 2025 forecast.

Is Thor Industries stock a buy?

Thor stock was already looking attractively valued before this new prediction surfaced. At its present $5.3 billion market capitalization, the stock costs only about 25 times earnings. With a 2% dividend yield and consensus forecasts for earnings to grow nearly 20% annually over the next five years, that’s already probably cheap enough to justify buying Thor stock.

Now, with Bank of America suggesting Thor will grow even faster than anticipated, Thor stock looks even more like a buy, especially if earnings gains are likely to be front-loaded over the next 12 months or so. Granted, so close to earnings day, the prudent thing is probably to wait for Q2 earnings news to come out, and buy Thor stock only if the results clearly back up BofA’s bullish view.

There’s a risk “the train will leave the building” if the news is too good, of course. But with so much bad news in the stock market the past few weeks,  and Thor expected to report an earnings decline for the quarter, there’s also a very good chance that Thor’s good news may be lost in the “noise” of a falling stock market this week.

So long as Q2’s losses are no worse than anticipated, and assuming the guidance looks good, and assuming the stock doesn’t run too high in response, investors may soon get a chance to buy into Thor stock at a nice price.