Jefferies Starts Polaris Industries (PII) at Hold

Jefferies initiates coverage on Polaris Industries (NYSE: PII) with a Hold rating and a price target of $69.00.

Analyst Trevor Young commented, "PII (HOLD, PT $69) should be best-in-class given scale, breadth of products, and growing motorcycle business, but recalls likely to weigh on revenue, share and margin in S-T. Polaris has strong momentum with Indian motorcycles, while a growing commercial/gov't adjacent market business helps reduce cyclicality. Ongoing cost reduction initiatives and scaling motorcycle to achieve company-level GM create a meaningful L-T margin opportunity. PII can likely outperform in the long-term, and EPS could reach $6.75 by FY18 (+8% vs. consensus), but we remain on the sidelines as ongoing recalls may not have run their course yet. We are -9% below FY17 consensus EPS, but are +3% ahead on FY18."

For an analyst ratings summary and ratings history on Polaris Industries click here. For more ratings news on Polaris Industries click here.

Shares of Polaris Industries closed at $75.47 yesterday.

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