Investing.com --KeyBanc cut rating, lowered its estimates and price targets for several leisure product companies amid a muted retail demand and ongoing macro pressures.

Brokerage downgraded Thor Industries (NYSE:THO) to Underweight from Sector Weight and Malibu Boats (NASDAQ:MBUU) to Sector Weight from Overweight given concerns about weak consumer demand for discretionary purchases.

KeyBanc noted that February was weak for both RVs and marine products, impacted by unfavourable weather and macroeconomic pressures, including higher rates and inflation.

While March showed some sequential improvement, the overall retail environment remains sluggish.

For RVs, dealer inventory is balanced, but order appetite remains low as dealers remain cautious about overstocking.

In the marine segment, inventory levels are heavier, with some 2023 models still on lots. Discounted 2024 models have shown relative strength, but dealer appetite for new orders is weaker than in the RV segment.

Thor was downgraded to Underweight on high valuation and lower earnings expectations, with a downside price target of $65, reflecting 14.5x FY26 EPS.

Despite viewing MBUU as a high-quality name, macro concerns prompted Malibu Boats downgrade to Sector Weight, and tempered expectations for the selling season.

Winnebago price target cut to $47 giving 10x lower FY26 EPS estimates due to a weaker RV market outlook.

Camping World price target lowered to $22 reflecting multiple compression due to heightened uncertainty, although KeyBanc maintained an Overweight rating on CWH.

KeyBanc noted that while dealers remain hopeful for improvement in spring, the overall environment remains challenging for both RV and marine segments.

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