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Analyst: ‘Powersports industry outlook remains stable’

Wells Fargo Securities analyst Tim Conder, in a research note provided to Powersports Business, reports that the “powersports industry outlook remains stable and [Polaris] is well positioned to generate further modest share gains.”

Conder notes that during Q3, “[Polaris] gained share in all business segments in North America and in all major geographies.”


Conder goes on to write that Polaris motorcycle “shipments/retail underwhelmed in Q3 2014 due mostly to issues ramping a new paint system impacting production of two-tone Indian and the new Victory Magnum. We believe paint ramp up issues are normalizing and Q4 2014 wholesale will be larger than seasonally ‘normal.’ Initial orders for Scout are strong and shipping will start globally in November. Victory continues to decline largely due to lack of recent investment and ~10% cannibalization from Indian (does Victory plateau in 2-3 years?). Ramp of U.S. Indian dealers retailing continues slowly with 109 of 160 signed U.S. dealers retailing (expected 125 by YE14). All 70 international dealers are currently retailing. Slingshot is in production, but shipments were pushed back to mid-Nov for quality assurance testing (common in new product launches). We expect Motorcycles (Victory, Indian, PG&A) to reach a profitable run rate exiting 2015.”

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