Polaris Industries (PII) PT Lowered to $86 at Citi

Citi analyst James Hardiman lowered the price target on Polaris Industries (NYSE: PII) to $86.00 (from $96.00) while maintaining a Neutral rating.

The analyst comments "As of its 1Q24 earnings report in late April, Polaris estimated that dealer inventory was flat sequentially and down excluding Youth, Xpedition, and Ranger XD. The company stated that it was actively working to drive down inventory in weaker categories such as RZR, Snow, and Marine, and spoke to elevated snow inventory given a weak snow season. Dealer inventory was down 14% y/y in the softer RZR and Marine categories. PII management has previously noted that dealers are worried about the economy and demand, counting on promotions to help drive demand, and are expressing ‘frustration over interrelated issues of margins, flooring interest, inventory, and retail’. While interest rates will continue to put pressure on consumers for the time being, PII has worked to calibrate dealer inventory and feel confident that Polaris inventory is in a healthy position. At an analyst event in mid-May, PII management noted that it has seen the recreation segment stay weaker and utility stronger for longer than anticipated but has been able to rebalance production more quickly than they have historically. This resulted in what management characterized as the most current dealer inventory “by far” in both the ORV and marine industries."

You May Also Be Interested In

• Yum! Brands (YUM) PT Lowered to $180 at Argus
• Benchmark Reiterates Buy Rating on Ooma (OOMA)
• Bernstein SocGen: 'Investor day makes us more bullish on SanDisk (SNDK)'