BMO Capital analyst Tristan M. Thomas-Martin has reiterated their neutral stance on PII stock, giving a Hold rating today.
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Tristan M. Thomas-Martin has given his Hold rating due to a combination of factors influencing Polaris’s current market position. While the company’s second-quarter performance exceeded expectations and the impact of tariffs has been reduced, the overall valuation of Polaris’s stock appears high. This is particularly concerning given the ongoing pressures on retail demand, especially in the recreational segment, and broader macroeconomic uncertainties.
Despite the introduction of promising new products like the Ranger 500 and improvements in channel inventory, there are still significant challenges. The flat retail unit sales in North America and the lack of reinstated guidance for 2025 reflect the cautious outlook. Additionally, the potential risks from tariffs and the effects of rising interest rates and inflation on consumer budgets contribute to the decision to maintain a Hold rating.