ATV Maker Polaris Rises After Analyst Upgrade

NEW YORK (AP) — Shares of Polaris Industries Inc. rose Wednesday after an analyst upgraded shares of the off-road vehicle maker as dealers welcome new product offerings and rivals' promotions moderate.

Wedbush Morgan analyst Rommel T. Dionisio upgraded the shares to "Outperform" from "Neutral" and raised the price target to $47 from $34.

"As dealer inventories normalize industry-wide, competitive promotions should soon moderate," Dionisio said.

Polaris makes snowmobiles, motorcycles and all-terrain vehicles for sport and utility use.

While the Medina, Minn., company's dealer inventories have remained relatively lean the past several quarters, rivals like Kawasaki and Yamaha have "seen bloated dealer inventories during this economic downturn, resulting in heightened promotional activity earlier this year to help clear inventories," the analyst said.

Dionisio also noted "particular enthusiasm" for the company's 2010 product lineup as well as "overall all-terrain vehicle market stabilization and continued share gains by Polaris."

In morning trading, Polaris shares rose $3, or 7.8 percent, to $41.32 In the past 52 weeks, the stock has ranged from $14.53 to $54.26.