BofA analyst Alexander Perry raised the firm’s price target on Polaris to $70 from $60 after the company agreed to sell a majority stake in Indian Motorcycle to California-headquartered private equity firm Carolwood.
Polaris (PII) stock witnessed price target hikes on Tuesday after the specialty vehicle manufacturer announced a deal to separate its Indian bike operations from its portfolio and into a standalone business.
BofA analyst Alexander Perry raised the firm’s price target on Polaris to $70 from $60 while keeping a ‘Neutral’ rating on the shares after the company agreed to sell a majority stake in Indian Motorcycle to California-headquartered private equity firm Carolwood, as per TheFly.
Roth Capital analyst Scott Stember, meanwhile, raised the firm’s price target on the stock to $54 from $41 and kept a ‘Neutral’ rating on the shares. While BofA’s new price target implies a potential upside of about 14% from the stock’s closing price on Monday, Roth Capital’s new target suggests a potential downside of about 12%.
Shares of Polaris traded 13% higher on Tuesday at the time of writing. On Stocktwits, retail sentiment around PII stock jumped from ‘neutral’ to ‘bullish’ territory over the past 24 hours, while message volume increased from ‘normal’ to ‘high’ levels.
A Stocktwits user applauded the company’s move as a good decision.
Polaris did not disclose the size of the deal with Carolwood on Monday but said the divestiture would boost Polaris’s annualized adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by about $50 million and annualized adjusted earnings by $1 a share. The closing of the transaction is expected in the first quarter of 2026.
CEO Mike Speetzen said the sale would enable Polaris to focus on the parts of its business that have the most growth potential. However, the company said it would continue to maintain a small equity position in the Indian Motorcycle business after the closing of the transaction.
Polaris also said on Monday that it expects third-quarter sales to be at the high end of its previously issued guidance range of $1.6 billion to $1.8 billion. The company now anticipates third-quarter adjusted earnings per share to be in the range of $0.31 to $0.41, higher than its original expectations.
Speetzen said the higher expectations are driven by higher-than-expected shipments, strong cost management, and ongoing progress within operational efficiency initiatives.
PII stock is up by 20% this year and down by about 15% over the past 12 months.
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