Courtesy of Benzinga.
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