An Arctic Cat research note provided to Powersports Business from Feltl and Company analyst Mark E. Smith on Wednesday gives Cat stock a “strong buy” rating in advance of the company’s Q4 earnings call on May 15.
Feltl reports that the quarter that ended in March is Arctic Cat’s “seasonally weakest quarter, but we still expect strong sales growth. We project 22 percent revenue growth with all of the improving sales coming from ORV sales.”
Feltl goes on to write that the “Wildcat launch is a catalyst for the stock. We project approximately 36 percent year-over-year growth in ORV sales [in the quarter] due to the Wildcat launch. … We also expect an approximate 46 percent increase in ORV sales in calendar 2012 due primarily to the Wildcat and think there is upside potential to our estimates. Our recent dealer channel checks give us confidence in our estimates.”