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Polaris, Harley-Davidson, Brunswick Seeing Improving Competitive Positioning, Easing Tariff Pressures, Morgan Stanley Says
Polaris (PII), Harley-Davidson (HOG), and Brunswick (BC) are seeing an improving competitive scenario, as well as easing tariff pressures, Morgan Stanley said in a note Tuesday following the companies' Q1 results.Morgan Stanley said it is raising 2026 estimates for the companies because it also expects "easy retail comparisons" in Q2 to provide upside to their guidance.Polaris and Brunswick posted Q1 results above expectations backed by "stronger-than-expected flow through" as sales were mainly in-line, Morgan Stanley said.Harley's Q1 results were "in-line to below" as promotions to clear inventory weighed on its bottom line, even though the company's new long-term targets supported the stock, the note said.Also, the three companies provided indication during their earnings calls that in the absence of major adverse macroeconomic and tariff headwinds, their outlook may prove to be conservative, the investment firm said.Morgan Stanley said, however, it is keeping its equalweight rating on Polaris and Brunswick as the mix of rates and tariffs is still muddying visibility, while for Harley it is reiterating an underweight rating, adding the company's new targets still seem "aggressive."Morgan Stanley increased Harley's price target to $15 from $12, while it trimmed Polaris' price target to $69 from $74, and it lifted Brunswick's price target to $86 from $82.Price: $59.95, Change: $-4.04, Percent Change: -6.31%
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