MPX - Polaris: Valuation Is Starting To Get Attractive

2024-06-19 08:23:40 ET

Summary

• Polaris has started to report falling revenues and earnings at recreational vehicle and marine product manufacturers have seen an industry-wide demand decline.
• The company guides for quite a stable rest of 2024, but I believe that the current guidance has a good likelihood of being missed with continued instability.
• Polaris' valuation is becoming more attractive as the long-term investment case stands but the stock price has been hit by weaker short-term financials.

Since my previous article on the stock, Polaris Inc. ( PII ) has reported three quarters of financials, starting to show more earnings turbulence due to a weaker macroeconomic backdrop. The company guides for some continued weakness during 2024, but I believe that the persisting macroeconomic uncertainty warrants skepticism around Polaris’ ability to achieve the guidance....

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