Arctic Cat stock added to Wells Fargo Securities coverage lineup

Wells Fargo Securities analyst Tim Conder inititated coverage of Arctic Cat stock on Wednesday with a “Market Perform” rating, according to a research note provided to Powersports Business.

Conder reports that concerns include “(1) elevated Off-Road Vehicle (ORV) channel inventory, (2) weakened dealer relations, (3) quality issues, (4) outstanding litigation/regulation, and (5) int’l/FX headwinds.”

Conder adds that new CEO Christopher Metz “is undertaking a broad reassessment of the company’s strategy and approach to execution issues, with detail expected early in April 2015. Top priorities include (1) mending strained dealer relations and the channel inventory approach, (2) reinventing the product development process, and (3) improving working capital. Longer term, we believe ACAT will focus on expanding its product coverage, further penetrating existing and new markets, and executing on operational excellence initiatives to drive longer-term profitable growth.”