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Morgan Stanley sticks with an Overweight rating on Polaris (PII +3.5%) as it points to what it sees as a big catalyst next month with the company's analyst day event likely to include details on the electrification strategy. Analyst Billy Kovanis also thinks some long-term targets will be issued by Polaris management.
"We remain bullish on Polaris but we have reset expectations for retail sales and margins and expect that 2022 will mark a transition year for the company. Upside to earnings would stem from strong expense control on the operating side combined with operating leverage, alleviation of elevated supply chain costs, declines in spot commodity rates / rolling-off of prior hedges, and a full year of pricing power."
Morgan Stanley keeps a price target of $140 on Polaris (NYSE:PII) to rep more than 20% upside for shares. PII trades below its 50-day, 100-day and 200-day moving averages.