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<h1 class="style1">Arctic Cat Down on Slowing ATV Sales
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<p class="style1"> © 2008 The Associated Press </p>
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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>
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