Polaris: A Mistake Long Past Due Correcting (Downgrade)

Polaris is downgraded to "Hold" due to persistent revenue and profitability declines since 2023, despite prior optimism. PII's core Off-Road, On-Road, and Marine segments have all experienced significant sales and margin contraction, driven by post-pandemic demand normalization and industry headwinds. Management expects flat to modest revenue growth in 2026, with organic sales targeted to rise 8% and EBITDA to rebound to $498.5 million.