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Analyst Actions: Winnegabo Rides High on Upgrade; RV Recovery Seen

by MidnightTrader.com February 8, 2010 2:52 EST Related Symbols:

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02:52 PM Eastern Standard Time, 02/08/2010 (MidnightTrader) — Winnebago Industries Inc. (WGO) is holding most of its gains in afternoon trading, up more than 7%, after an R.W. Baird upgrade this morning, largely on valuation following the stock’s recent plunge.

Analyst Craig Kennison lifted the stock to "neutral" from "underperform," citing 31% slide in value since hitting a 52-week high of $16.44 in October. The stock opened up 40 cents at $11.73 and hit a high of $12.48, before easing back 34 cents. The stock has traded as low as $3.14 over the past year.

While upgrading the stock, Kennison warned that the recreation vehicle maker has some distance to travel before it fully recovers. RV makers have been hit hard by the recession, but he cited a "robust" wholesale recovery, large order backlog and signs of improving retail demand as factors underlying his optimism about the stock.

Price: 12.16, Change: +0.83, Percent Change: +7.33

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