Update shared on 01 Dec 2025
Analysts have increased their price targets for Polaris by significant margins, with new estimates ranging from $54 to $70. They attribute the boosts to better-than-expected third quarter results, positive retail trends, and the company’s plan to sell a majority stake in its Indian Motorcycle division to private equity.
Analyst Commentary
Bullish Takeaways- Bullish analysts highlighted Polaris's strong third quarter pre-announcement, noting ongoing improvements in retail trends and inventory normalization in the dealer network.
- The planned separation and sale of a majority stake in the Indian Motorcycle business is viewed positively. Analysts expect this move will improve adjusted EPS and operational margin performance.
- Rising price targets reflect confidence in the company’s strategic moves, including divestitures that could address historically lower margins within the on-road segment.
- Resumption of market share gains and successful reaction to past inventory challenges have fueled optimism for sustained revenue and earnings growth.
- Bearish analysts maintained Neutral ratings despite raising price targets. This signals some caution about the company’s valuation relative to execution risk.
- There are concerns that the growth benefits from the separation of Indian Motorcycles may not be fully realized if gross margin improvements fall short of expectations.
- Uncertainty remains regarding the financial impact of the deal, given the lack of disclosed terms and how the changes will influence long-term profitability.
- Macroeconomic factors and possible headwinds within the broader recreational vehicle market continue to be monitored as potential risks to achieving higher valuations.
What's in the News
- UBS raised Polaris's price target to $58 from $45 while maintaining a Neutral rating on the shares (UBS).
- Polaris Off Road announced new 2026 enhancements and special editions for its RZR and RANGER vehicles. Updates include a significant RZR XP redesign and limited-edition models for Mexico and mountainous terrain.
- Godfrey Pontoon Boats, a Polaris brand, unveiled a complete redesign of the Sanpan and Monaco series for the 2026 model year. The redesign focuses on versatility, comfort, and innovative features.
- The company concluded a major share buyback program and repurchased over 7.9 million shares, representing 13.5% of shares for $890.69 million since April 2021.
Valuation Changes
- Consensus Analyst Price Target is unchanged at $65.83, reflecting stable expectations for the stock's fair value.
- Discount Rate has increased slightly, moving from 8.008% to 8.031%. This indicates a marginal uptick in perceived risk or required return.
- Revenue Growth projections remain essentially flat at approximately 2.06% year over year.
- Net Profit Margin forecast is virtually unchanged, staying close to 4.77%.
- Future P/E ratio has edged up fractionally from 12.95x to 12.96x, suggesting minimal change in long-term market valuation assumptions.
Disclaimer
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