Limited upside is ahead for shares of Winnebago Industries , according to MKM Partners. Analyst Scott Stember downgraded shares of the RV-maker to neutral, noting that industry conditions and inflation have deteriorated since the firm launched coverage of the stock with a buy rating in May. Winnebago’s stock has rallied more than 46% since hitting a recent low in May, which currently puts shares within 6% of the bank’s $67 price target and means that limited upside is ahead. “While all RV stocks have no doubt been favorably impacted by a fair amount of short covering over the past two+ months, as well as experienced some form of help from general outperformance of smaller cap stocks, in recent weeks, the fact remains that near-to medium-term prospects within the RV space remain challenging,” Stember wrote. Although the company will likely persist as a market share taker and has exposure to a strong marine segment, the industry outlook is murky going forward, giving MKM Partners little incentive to up its price target and estimates, Stember wrote. “However, we would certainly look to revisit our investment thesis, provided that the fundamental outlook does not worsen and of course, at the right price,” he said. — CNBC’s Michael Bloom contributed reporting
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