Wells Fargo Upgrades Polaris Industries (PII) to Outperform; Growth Opportunities Intact

Wells Fargo upgraded Polaris Industries (NYSE: PII) from Market Perform to Outperform with a price target range of $120-$125.

Wells analyst says, "While we unfortunately have been on the sidelines for the large move in PII shares since bottoming in March 2009, the recent market-related pullback provides an opportunity to upgrade our rating given 25-30% upside potential to our $120-125 valuation. We believe PII's long-term outlook remains positive as Polaris has multiple opportunities for continued growth driven by: (1) additional modest North American ORV market share gains, (2) military, (3) Bobcat JV, (4) GEM acquisition likely accretive in 2012, (5) Indian acquisition, and (6) international penetration/whitespace expansion. Solid organic cash flow, 18.1% debt/total capital (as of June 30, 2011), and $250MM available under current revolver (expiring December 2012) should allow Polaris to fund additional H2 2011/2012 (and beyond) niche acquisitions, providing additional revenue and EPS accretion."

For more ratings news on Polaris Industries click here and for the rating history of Polaris Industries click here.

Shares of Polaris Industries closed at $95.06 yesterday.

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