BMO Capital analyst Tristan M. Thomas-Martin maintained his unbiased stance on PII stock and assigned a hold yesterday.
Geoff Meacham assigned the score of Hold due to a combination of points affecting Polaris’ monetary functionality and market position. The recent fourth-quarter earnings report showed below-expected effects, with retail demand below management’s expectations. As a result, Polaris has had its shipping volume up while facing continued promotional pressures. Projections for 2024 were also particularly below market expectations, prompting considerations about management’s optimism for the second part of the year, especially given the expected recovery in off-road vehicle (ORV) margins. .
In addition, Polaris’ adjusted earnings on a percentage-wise basis fell below analysts’ and Street’s estimates, marking a decline from a year earlier. Revenue also saw a drop, and while retail sales in North America showed growth, the snowmobile segment performed poorly due to inadequate snowfall. In addition, there is notable caution towards the broker network, with concerns about the economic outlook and demands, along with pressure on margins and stocks. While long-term trends for Polaris app and recreational cars remain positive, the stock’s current valuation reflects risks, adding macroeconomic uncertainty and the effects of inflation and emerging interest rates. interest, which justifies the rating of Hold.
According to TipRanks, M. Thomas-Martin is a 3-star analyst with an average return of 7.3% and a 56.25% success rate. M. Thomas-Martin covers the Consumer Cyclical sector, focusing on stocks such as LCI Industries, Brunswick, and Patrick Industries.
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