Polaris shares jump on strong sales
Analysts says consumers buying more ATVs, shares of Polaris up in trading
Polaris Industries Inc.'s shares jumped Monday on reports that sales of the company's off-road vehicles are strong.
THE SPARK: Citi analyst Gregory Badishkanian said in a research note Monday that dealer checks indicate that sales of all-terrain vehicles are growing for Polaris. The company also appears to be gaining market share over its competitors.
THE BIG PICTURE: Despite the tough economy and drought in the Midwest, consumers still appear excited to buy ATVs and other major vehicles. Badishkanian noted that Polaris has a number of new products that are resonating well with customers. He said it also appears to be growing in international markets and in its higher-end motorcycle business.
THE ANALYSIS: Polaris is well-positioned both in the short term and for the next several years thanks to its market share gains and new product innovations. It appears to be on track to reach its goals, Badishkanian said in his note.
The Citi analyst has a "Buy" rating on the company's shares with a $94 price target.
SHARE ACTION: Shares jumped $2.78, or 3.5 percent, to $81.35. The company's shares are near their 52-week high of $83.63 set May 2. They traded as low as $46.83 last October.
