BairdAnalyst firm R.W. Baird has raised its valuation on Winnebago to “neutral” as the RV manufacturer approaches its $11 a share price objective.

In announcing its decision to upgrade Winnebago’s stock, Baird analyst Craig Kennison said, “Our fundamental outlook for Winnebago is unchanged. We see a robust wholesale recovery – but meaningful profits may lag. Indeed, our model assumes 20 percent retail growth, share expansion, and 142 percent shipment growth – but Winnebago likely will lose money in F2010 and earn just $0.56 ($0.36 tax-affected) per share in fiscal year 2011.”

The Baird report notes that Winnebago is the No. 1 manufacturer of Class C units, the No. 1 manufacturer of Class A gas units, and the No. 4 manufacturer of Class A diesel units. The analyst firm also notes that Winnebago is actively seeking to grow its share of the diesel market, and that the company is expected to be one of the survivors to emerge from the current recession.

However, the Baird report also notes that the towables market is performing better than the motorized one that Winnebago serves, and that there is a sizeable group of stock traders that are shorting Winnebago’s shares. Based upon those factors, Baird said it believes “neutral” is the appropriate rating for Winnebago’s shares.