Polaris price target lowered to $110 from $138 at Citi

Citi analyst James Hardiman lowered the firm’s price target on Polaris (PII) to $110 from $138 and keeps a Neutral rating on the shares. The analyst also opened up a pair trade of overweight BRP (DOOO), underweight Polaris. The “sizable valuation premium” accorded to Polaris does not mirror the performance of these two companies, the analyst tells investors in a research note. Based on conversations with dealers, Citi estimates Polaris North American off-road vehicle retail sales in Q3 to date have slowed meaningfully from the 14% reported by the company. BRP appears to have absorbed Polaris’ “best shot earlier in the year and continues to see consistent share gains throughout,” contends the firm.