Summary:
- Polaris Inc. (PII, Financial) carries a Dividend Safety Score of F, causing concern for dividend sustainability.
- Analyst price targets indicate a potential downside from the current stock price.
- GuruFocus estimates a significant upside based on GF Value, suggesting potential undervaluation.
Investing in dividend stocks requires careful analysis, especially when the stock is flagged with a low dividend safety score. Polaris Inc. (PII) has been rated with a Dividend Safety Score of F, raising red flags about the possibility of future dividend cuts. Notably, 64.4% of stocks with a similar rating have historically reduced their dividends over the past 11 years, a consideration that income-seeking investors should weigh heavily when evaluating their portfolios.
Wall Street Analysts Forecast
Turning to Wall Street analysts' perspectives, the outlook for Polaris Inc. (PII, Financial) remains cautious. Based on the analysis of 11 experts, the average price target for the stock is set at $33.73 — with estimates ranging from a high of $51.00 to a low of $22.00. This average target suggests a downside potential of 7.27% from the current trading price of $36.37. For detailed projections and further insights, visit the Polaris Inc (PII) Forecast page.
In addition to price targets, brokerage firm recommendations reflect a consensus "Hold" rating for Polaris Inc. (PII, Financial), with an average score of 3.1 on a scale where 1 indicates "Strong Buy" and 5 represents "Sell." This consensus underscores a cautious stance from analysts, suggesting that investors should carefully consider their positions.
Despite these conservative viewpoints, GuruFocus offers a contrasting perspective through its GF Value metric. According to the analysis, the estimated GF Value for Polaris Inc. (PII, Financial) is projected to reach $72.52 within a year. This presents an impressive upside potential of 99.4% from the current price of $36.37, indicating a possible undervaluation of the stock. The GF Value is derived from historical trading multiples, business growth history, and future performance estimations, providing a comprehensive gauge of the stock's fair trading value. For a more in-depth analysis, please refer to the Polaris Inc (PII) Summary page.
