WGO – Management’s confidence in their Towable segment, expanded product lines, and brand equity imply that market expectations are overly bearish, and upside is warranted

• Winnebago Industries (WGO:USA)currently trades below historical averages relative to UAFRS-based (Uniform) Earnings, with a 9.0x Uniform P/E (Fwd V/E’). At these levels, markets have overly bearish expectations for the firm, and given management’s confidence in their Towable segment growth, expanded product lines, and brand equity, further upside is warranted
• Specifically, management is confident that no other RV company in North America organically gained the Towable segment market share that they did in FY 2018. Additionally, they are confident in their expanded product lines, particularly in Grand Design RV, and in their ability to maintain accelerated growth in the Towable segment. They are also confident that customers are searching for premium companies with strong brands, and that they will look to minimize expenses across their income statement to offset increased input costs. Moreover, they are confident in their focus on building a high-performance culture through a unique blend of leadership, accountability, and giving