Arctic Cat Down on Slowing ATV Sales

**GRIZZLYWIZARD** · #1 (**permalink**) 01-25-2008, 05:41 AM

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 NEW YORK — Shares of Arctic Cat Inc. dipped Thursday as analysts  worried about slowing all-terrain vehicle sales amid difficult economic  conditions.</p>  

Wedbush Morgan Securities analyst Rommel Dionisio cautioned in a  client note that ATV sales remain weak, as they are being pinched by  economic factors including escalating fuel costs, a continued housing  downturn and tightening credit. Arctic Cat said Wednesday it swung to a  fiscal third-quarter loss on declining snowmobile and ATV sales.</p>  

The analyst reiterated a "Hold" rating and cut the Thief River Falls, Minn.-based company's price target to $9 from $10.</p>  

Craig Kennison of Robert W. Baird & Co. said Arctic Cat's stock  price is appealing, but agreed with Dionisio that economic factors will  weigh on the business.</p>  

"We remain cautious as discretionary spending slows and broad recession fears prompt headline risk," the analyst wrote.</p>  

Kennison maintained a "Neutral" rating and $10 price target, but  reduced his 2009 earnings estimate on the company to 25 cents per share  from 55 cents per share on weak consumer spending.</p>  

Shares of Arctic Cat fell 47 cents, or 6 percent, to $7.38 Thursday. The stock has traded in a 52-week range of $7.02 to $20.77.</p></div></body></html>

Thom · #2 (**permalink**) 01-25-2008, 09:07 AM

well tell tale signs of economy at present. First things to slide are the toys and in specific rereational vehicles.

**Koko** · #3 (**permalink**) 01-25-2008, 09:13 AM

Exactly. I'm sure all manufacturers across the board have seen declined atv sales.

**GRIZZLYWIZARD** · #4 (**permalink**) 01-25-2008, 09:28 AM

Arctic Cat around here are a little more expensive around here when compared to the imports. Another thing they always fail to do is push the accessory line. That to me is one of their best assets when compared to some of the other manufactures.

Thom · #5 (**permalink**) 01-25-2008, 10:43 AM

agreed. they do have quite a list of accessories for the bike Especially the speedrack options. I think they hurt themselves a little on that end. the new models do not come with the heavier speedrack. it is now an option. dumb in my opinion.

**Koko** · #6 (**permalink**) 01-25-2008, 11:09 AM

I still don't get why a/c and polaris don't benchmark the other brands. They out sell them by the boatload. Get rid of features people don't like and build a machine like the foreign brands. They try to differentiate themselves too much and it hurts them.