Market Overview

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

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

May 2019UpgradesMarket PerformOutperform
May 2019MaintainsBuy
May 2019UpgradesNeutralOutperform

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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