Seaport Research began covering Polaris Inc. (NYSE:PII) on January 8, assigning a Buy rating and setting an $83 price target. The firm described Polaris as a maker of high-quality outdoor recreation products and expressed optimism about U.S. consumer trends and outdoor activity. Seaport noted that powersports market conditions appear to be improving as dealer inventories start to normalize. The firm stated that Polaris shares look undervalued and argued the market is not fully recognizing the company's earnings potential.
In October, Polaris announced plans to separate Indian Motorcycle and operate it as a standalone business. The company signed a definitive agreement to sell a majority stake in Indian Motorcycle to Carolwood LP, a private equity firm based in Los Angeles that was founded in 2014. Indian Motorcycle generated approximately $478 million, or about 7% of Polaris's revenue, over the twelve months ended June 30, 2025.
Polaris expects the transaction to be financially beneficial once completed. Management said the deal should increase annualized adjusted EBITDA by around $50 million and add roughly $1.00 to adjusted EPS. Closing is anticipated in the first quarter of 2026, assuming standard closing conditions are met. Polaris also plans to retain a small equity stake in Indian Motorcycle after the transaction and expressed confidence in the brand's future under Carolwood's ownership.
Polaris Inc. designs, engineers, manufactures, and markets a variety of powersports vehicles.