Alternative vehicle company Polaris should be ready to roll once supply chain issues ease, according to Citi. Analyst James Hardiman added the stock to Citi's Focus List, saying in a note to clients on Tuesday that Polaris was his favorite name among leisure stocks and should be in a strong position after its supply chain normalizes. "PII has been the hardest hit company in our coverage by supply chain issues, and we believe stands to gain the most should conditions improve," Hardiman wrote. "While our most recent checks show these issues persisting (if not intensifying), the potential for retail acceleration as well as margin expansion is all the more attractive once supply chain clouds have cleared." Polaris is hosting an analyst and investor day on Thursday, which could give an updated look at the company's long-term plans. "While the short term is clouded by supply chain issues, we are most excited to hear about the long-term margin opportunity for the company given substantial margin depression in recent years from supply chain and trade, with the potential for hundreds of basis points of expansion as these headwinds ease," the Citi note said. A basis point is equal to 0.01%. Despite the supply chain issues, Polaris' stock has already gained more than 13% year to date. Citi maintained its buy rating and its price target for Polaris at $157 per share. The target is 26% above where the stock closed on Friday. —CNBC's Michael Bloom contributed to this report.
Slingshot, a go-cart by Polaris.
Myung J. Chun | Los Angeles Times | Getty Images
Alternative vehicle company Polaris should be ready to roll once supply chain issues ease, according to Citi.