“We see strong SxS momentum continuing for the foreseeable future and believe other growth avenues could develop more quickly than investors currently expect,” RBC Capital Market analyst Ed Aaron reports in a research note provided to Powersports Business following his recent marketing trip with Polaris Industries management and ongoing dealer checks. “Our outlook suggests potential for continuation of strong growth and positive revisions, which we think argues for multiple expansion.”
Aaron, whose marketing trip included Polaris CEO Scott Wine and Matt Homan, VP/Europe, Middle East, Africa, and Richard Edwards, VP/Investor Relations, also reports that “our single biggest takeaway from our time with management is that the Street could be significantly underestimating the growth potential of Polaris’ motorcycle business. … Indian’s market opportunity is much larger than Victory’s, and while Indian will go up against a formidable competitor in Harley-Davidson, research shows significant latent demand among consumers who value the Indian brand.”
Aaron writes that there’s “no sign of a top in SxS,” with … “our expectation for a mid-year RZR introduction, and the launch of the commercial product co-developed with Bobcat.”Click here for reuse options!
Copyright 2012 Powersports Business