Jefferies Starts Arctic Cat (ACAT) at Buy

September 30, 2016 7:11 AM EDT
Get Alerts ACAT Hot Sheet
Price: $15.41 +1.78%

Rating Summary:
    4 Buy, 6 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 14 | Down: 11 | New: 8
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Jefferies initiates coverage on Arctic Cat (NASDAQ: ACAT) with a Buy rating and a price target of $19.00.

Analyst Trevor Young commented, "ACAT (BUY, PT $19) has an opportunity to accelerate its turnaround/share gains amid new product launches and recalls plaguing peers. ACAT's stock is down ~75% over the last ~3 years as recalls, FX and margin declines have weighed. New management is early in its turnaround and multi-year product refresh, but ongoing recalls at PII position ACAT to accelerate share gains, particularly in SBS/ATV, to which it is underexposed. CAD headwinds abating and positive unit growth should help GM expansion; regaining its historical average could help ACAT achieve positive EPS, but management has to execute. A pending strategic partnership could be a meaningful near-term catalyst. ACAT also screens as an acquisition/go private target (EV/sales ~0.4x, below-peer margins, minimal leverage). We are +3% and +2% ahead of consensus FY17/18 revenue and +20% (~$5m) ahead on FY18 EBITDA."

For an analyst ratings summary and ratings history on Arctic Cat click here. For more ratings news on Arctic Cat click here.

Shares of Arctic Cat closed at $14.41 yesterday.

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