Wunderlich Securities Sees Mixed Factors for Arctic Cat

Loading...
Loading...
In a report published Wednesday, Wunderlich Securities analyst Rommel Dionisio reiterated a Hold rating and $29.00 price target on
Arctic CatACAT
. In the report, Wunderlich Securities noted, "Though retail sales momentum for snowmobiles appears to have picked up in recent weeks, according to our proprietary dealer channel checks, Arctic Cat (ACAT; #3 in the industry) still appears to be seeing modest market share deterioration this winter to #2 Polaris (PII–$152.09, Buy). Arctic Cat, along with industry leader Ski-Doo
CA
, both recently responded with sharply increased promotions and rebates to help clear dealer inventory. Such promotions could therefore put near-term quarterly earnings at risk. Therefore, we maintain our Hold rating. Our price target of $29 on ACAT is derived using a 6.5x EV/2015E EBITDA multiple, a 25% discount to the peer group average given the lack of visibility on the company's turnaround efforts." Arctic Cat closed on Tuesday at $37.31.
Posted In: Analyst ColorReiterationAnalyst RatingsRommel DionisioWunderlich Securities
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...