Morgan Stanley Trims Polaris (PII) PT to $69 as Rates and Tariffs Weigh on Outlook

With an yearly dividend output of 4.01%, Polaris Inc. (NYSE:PII) is included among the 10 High Yield Stocks for Lasting Retirement Income.

On May 19, Morgan Stanley lowered its terms proposal connected Polaris Inc. (NYSE:PII) to $69 from $74. It reiterated an Equal Weight standing connected the shares. The steadfast said it raised its 2026 estimates pursuing the company’s first-quarter results, reflecting net that came successful up of expectations, improving competitory positioning, and easing tariff pressures. The expert besides noted that the operation of involvement rates and tariffs continues to unreality visibility for the business.

During the Q1 2026 net call, CEO Michael Speetzen said the institution started the twelvemonth strongly, with quarterly results exceeding expectations. He noted that reported income accrued 8%, portion integrated income roseate 14% aft excluding the interaction of Indian Motorcycle and related items. Speetzen besides said Polaris posted adjusted net per stock of $0.13. According to him, EPS would person reached $0.26 without the Indian Motorcycle business.

He said first-quarter request was chiefly driven by the inferior and commercialized segments. The company’s Power Sports part posted double-digit growth, supported by the inferior RANGER lineup, maturation successful the commercialized business, and snowmobiles. Speetzen added that North American retail income accrued 1%, portion ORV retail income roseate 3%. He besides said the institution ended the 4th with marketplace stock gains successful ORV, snowmobiles, and Godfrey pontoons.

The CEO tied borderline betterment to merchandise mix, pricing, and operational efficiencies, contempt ongoing tariff pressure. He said gross margins improved by 389 ground points, adjacent aft a 240-basis-point tariff-related headwind. He besides noted that trader inventory levels remained healthy. Snowmobile inventory, meanwhile, was reduced by much than 50% from the anterior twelvemonth pursuing important advancement during the quarter.

Polaris Inc. (NYSE:PII) designs, engineers, manufactures, and markets powersports vehicles. The institution besides designs and sources parts, garments, and accessories, including aftermarket accessories and apparel.

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