Near-term Woes
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Though things don’t look very promising, at least for the time being, the strong order book and positive demand trend indicate the company would survive the crisis and get back on track. So, those looking for long-term investments can consider adding Thor to their portfolio.
Future Perfect
Thor has enjoyed stable demand for its products and is focused on expanding the business. Hymer USA, a unique facility being planned at Bristol, is expected to help the company broaden its market share in North America, though the recent setback has put the venture in limbo. Erwin Hymer Group, the European firm that joined the Thor fold one year ago, has been a key contributor to revenues since then.
Almost all the analysts following Thor believe the stock is a good buy, with the price estimated to double in the long term. The company’s earnings performance has been average in the past, in terms of beating the estimates.
Looking Back
Thor ended the first half of 2020 on a positive note, posting earnings of $0.52 per share compared to a loss last year. The improvement reflects a marked increase in revenues to $2 billion. While the top-line exceeded the market’s expectations, earnings missed.
After shifting to recovery mode in mid-2019, Thor’s shares maintained the uptrend during the remainder of the year and beyond. But the stock started declining a few weeks ago and has lost 56% since then.