Update shared on03 Oct 2025
Fair value Increased 4.57%Analysts have increased their fair value price target for Polaris from $49.73 to $52.00. This reflects modest improvements in the company's discount rate, expected revenue growth, and a less severe outlook for industry tariffs, despite mixed retail demand expectations.
Analyst Commentary
Recent street research reveals a mix of optimism and caution from analysts regarding Polaris's near-term outlook and valuation trajectory.
Bullish Takeaways- Bullish analysts have raised price targets substantially, reflecting growing confidence in Polaris's ability to navigate industry headwinds.
- Modest improvements in expected revenue growth are contributing to upward fair value revisions.
- A less severe outlook on industry tariffs is seen as a positive catalyst for margins and international sales opportunities.
- A rebound in consumer confidence from previous quarters offers hope for stabilization in key product segments.
- Analysts maintain a cautious stance on demand, anticipating that 2025 may be a "lost" year for both the boat and off-road vehicle markets.
- Despite improved sentiment, retail demand is not expected to recover meaningfully in the short term and this tempers expectations for outsized growth.
- Neutral ratings continue to reflect concerns over the sustainability of recent positive momentum considering persistent industry uncertainties.
What's in the News
- UBS raised its price target on Polaris to $58 from $45 and is maintaining a Neutral rating (UBS).
- Polaris Off Road unveiled the all-new 2026 RANGER 500, a compact utility side-by-side designed for everyday use and value. Standard features include a roof, front bumper, winch, and LED headlights, with a starting U.S. MSRP of $9,999.
- Polaris announced its 2026 off-road vehicle lineup in celebration of 40 years of Polaris ATVs, introducing upgrades such as enhanced suspension, all-wheel drive, heated seats, and advanced in-cab technology across many models.
- Polaris completed the share repurchase of 7,936,457 shares, representing 13.5 percent, for $890.69 million under a buyback announced in 2021.
Valuation Changes
- The consensus analyst price target has risen moderately from $49.73 to $52.00, reflecting updated analyst expectations.
- The discount rate has fallen slightly, moving from 8.42 percent to 8.32 percent. This suggests a marginally lower perceived risk profile.
- Revenue growth assumptions have increased marginally from 2.44 percent to 2.49 percent. This indicates a modestly more optimistic outlook on top-line expansion.
- The net profit margin is nearly unchanged, slipping minimally from 3.00 percent to 2.99 percent.
- The future P/E ratio has edged up from 16.08x to 16.77x, signaling an increase in valuation multiples applied to projected earnings.
Disclaimer
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