Polaris Industries' motorcycle business is just one reason why RBC Capital Markets analyst Ed Aaron likes the Polaris setup "for 2012 and beyond."
Aaron, who provided a company update on Polaris to Powersports Business following a March 15-16 meeting with company executives in Texas and at the Polaris manufacturing facility in Monterrey, Mexico, reports that the "resurrection of the Indian brand, which Polaris acquired a year ago, could be a significant multi-year catalyst for Polaris' motorcycle business. The company plans to launch the revamped Indian line sometime next year."
Aaron also reports that "while side-by-sides are still the 'story' for now, management is very bullish on longer-term prospects for the motorcycle business. Management believes the motorcycle business is most likely to offset the eventual maturation of the side-by-side business."
Additionally, Aaron reported that Polaris management "was positively surprised by the outcome of this year's [winter dealer meeting]. Dealer attendance exceeded expectations, and the recently introduced 2013 model year sleds, especially the RMK, were reportedly well received. We surmised that the order activity at this year's meeting was easily enough to support management's guidance for snowmobiles to be down single digits in FY12."