Polaris Industries Inc. (PII) Price Target Raised

Analysts at Craig-Hallum Capital Group LLC have raised the price target for Polaris Industries Inc. (NYSE: PII) from $44 to $51.

Polaris reported EPS of $1.31 for the fourth quarter ahead of analysts’ estimates of $1.21. The earnings upside was mainly driven by better than expected revenue and improved gross margins. The company reported revenue of $471.8 million as against analysts’ estimate of $449.5 million. Gross margins improved by 450 basis points in the quarter. The company also showed signs of recovery in retail sales.

Polaris also initiated guidance for 2010. The company expects 2010 EPS to be in the range of $3.15-$3.30. Analysts at Craig-Hallum have raised EPS estimate for 2010 to $3.23 given the strong results for the fourth quarter and company guidance for 2010.

The management at Polaris has also indicated that it plans to put its share buyback program on hold in order to strengthen its balance sheet. The company is authorized to buyback an additional 3.8 million shares. Analysts at Craig-Hallum have an Accumulate rating for Polaris Industries Inc.