Polaris Industries "outperform," target price reduced

01/27/06 - Robert W. Baird

NEW YORK, January 27 (newratings.com) - Analysts at Robert W Baird maintain their "outperform" rating on Polaris Industries Inc (Pll), while reducing their estimates for the company. The target price has been reduced from $62 to $60.

In a research note published this morning, the analysts mention that the company has reported its EPS for the previous quarter marginally ahead of the estimates, primarily driven by a low tax rate, and lower-than-expected share count. Polaris Industries issued lower-than-consensus EPS guidance for 2006 due to its resolve to reduce production in order to eliminate excess dealer inventory. Robert W Baird expresses its optimism regarding the company’s long-term growth potential, given the strength in Victory motorcycles and KTM. The EPS estimate for 2006 has been reduced from $3.60 to $3.23.