Bank of America Securities analyst Alexander Perry has reiterated their neutral stance on PII stock, giving a Hold rating today.
Alexander Perry has given his Hold rating due to a combination of factors impacting Polaris’s financial performance. The company’s first-quarter earnings per share were slightly below expectations, influenced by a notable decline in sales across off-road, on-road, and marine segments. This decline was attributed to reduced volume and increased promotional activities, which also pressured the gross margin.
Additionally, the uncertainty surrounding tariffs has led to a cautious outlook. Polaris has withdrawn its fiscal year 2025 guidance due to potential tariff impacts, which could significantly affect earnings. The company is also facing challenges in the retail and consumer environment, with a decrease in North American powersports retail and off-road vehicle dealer inventory. These factors, combined with the potential tariff impact and competitive pressures, have led to a conservative price objective and the Hold rating.