The firm lowered its PII target by $5 while maintaining an Equal Weight rating amid macroeconomic pressures and earnings visibility concerns.
Morgan Stanley reduced its price target for Polaris Inc. (NYSE:PII) to $69 from $74, citing persistent headwinds from interest rates and tariffs. The firm retained an Equal Weight rating on the shares despite raising 2026 estimates after stronger-than-expected Q1 2026 results.
Polaris reported Q1 2026 adjusted earnings per share of $0.13, with CEO Michael Speetzen noting EPS would have reached $0.26 excluding the Indian Motorcycle business. Organic sales rose 14%, driven by utility and commercial segments, while North American retail sales increased 1%.
The company gained market share in ORV, snowmobiles, and Go segments, but macroeconomic uncertainties continue to weigh on visibility. Polaris currently offers a 4.01% annual dividend yield.