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Off-Roaders Are In Buying Mood, BMO Says In Polaris Upgrade

Courtesy of Benzinga.

Off-Roaders Are In Buying Mood, BMO Says In Polaris Upgrade

A long winter and the worst of the U.S.-China trade war may both be in the rearview mirror for off-road vehicle maker Polaris Industries Inc. (NYSE: PII), BMO Capital Markets said Tuesday.

The Analyst

Gerrick Johnson upgraded Polaris from Market Perform to Outperform with price target lifted from $96 to $99.

The Thesis

The worst-case scenario on tariffs is now accounted for in Polaris’ share price, Johnson said in a Tuesday note. (See his track record here.)

From now on, there’s a higher likelihood of tariffs being reduced than increased, the analyst said. 

With better weather, now is the time when customers are in the market for off-road vehicles, Johnson said. And that makes it a good time to be in the market for Polaris stock, he said. 

“Despite a volatile stock market and macro uncertainty, PII’s customers remain optimistic and we are seeing improvements in (off-road vehicle) demand as the spring weather has improved.” 

An anticipated major product upgrade announcement by Polaris this summer is “the worst-kept secret in powersports,” the analyst said. 

Price Action

Polaris shares were trading up 3.9 percent at $89.28 at the time of publication Tuesday. 

Related Links:

Polaris Has Favorable Risk-Reward, KeyBanc Says In Upgrade

China Will Raise Tariffs On $60B Worth Of US Goods To 25% By June 1

Photo courtesy of Polaris. 

Latest Ratings for PII

Date Firm Action From To
May 2019 Upgrades Market Perform Outperform
May 2019 Maintains Buy
May 2019 Upgrades Neutral Outperform

View More Analyst Ratings for PII


View the Latest Analyst Ratings

Posted-In: BMO Capital Markets Gerrick JohnsonAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

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