Following investor meetings with Polaris management at the company’s Minnesota headquarters and research and development center, Wells Fargo Securities analyst Tim Conder provided a research note to Powersports Business.
The largest growth opportunity for Polaris “is Indian motorcycles as Indian (1) could be the size of PII’s Ranger utility SxS, and (2) could eclipse Victory by 2015-2016. Indian is expected to be profitable by 2015 at worst and could be by 2014,” according to Conder.
Indian will gets its formal relaunch by Polaris at the late July dealer meeting.
Conder reports that Polaris “continues to gain share in high end SxS, is also doing well in utility SxS led by the Ranger 900.”
As for the competitive landscape, Conder says “Polaris is not seeing any aggressive pricing actions from Japanese competitors as a result of the weak yen as it appears competitors want to recoup margin instead of starting a price war. Additionally, given primary competitors Honda and Yamaha’s U.S. manufacturing capacity, the weaker yen actually raises these competitors effective costs.”