LCI Industries (LCII) Stock Forecast & Price Target

LCI Industries Inc. is projecting a revenue increase of approximately 5% year-over-year for the third quarter, driven by a 4% to 5% rise in RV OEM sales supported by significant pricing benefits. The company expects to maintain an operating margin of 5.9%, consistent with the previous year, while also reporting sales and adjusted EPS that have exceeded expectations. Furthermore, LCI Industries remains committed to achieving $5 billion in organic sales by 2027 and has made notable progress toward its 2025 goal of improving overhead and general administrative expenses by 85 basis points.

LCI Industries faces significant risks related to a potential economic downturn, which could lead to a decrease in earnings per share (EPS) to approximately $5.00, corresponding with a market multiple contraction to 8x and a potential downside risk to stock valuation around $40. Despite a year-over-year increase in net sales to about $327 million, primarily fueled by mergers and acquisitions and price adjustments, this growth is being countered by declining RV production, indicating vulnerability within its core market. Additionally, lingering mix headwinds and uncertainty surrounding tariffs may further pressure LCI’s ability to maintain market share, raising concerns about its future financial performance.