Research Report Polaris IndustriesTaylor HoffmanAugust 1, 2018
Company: Polaris Industries
Fair Value Estimate: $151 vs. Current Price: $108.02 (as of 9/12/2018)
Sector: Consumer Cyclical
Industry: Recreational Vehicles
Thesis: Despite an elevated number of product recalls, Polaris maintained its market dominance over the off-road vehicle segment (45% market-share in ATVs). As recalls subdue and warranty expenses decline, Polaris is poised to return to its long-term growth trajectory (5% sales, 15% EPS). We see the acquisition of Boat Holdings in Q1 2018 as another catalyst that should bolster sales and preserve margins at historical highs.