Shares of Polaris (PII) tumbled 6.86% in pre-market trading on Friday, following a significant downgrade from Baird. The investment firm lowered its rating on the recreational vehicle manufacturer from Outperform to Neutral, simultaneously slashing its price target from $56 to $40.

The downgrade appears to have triggered a sell-off among investors, who are reassessing their positions in light of Baird's less optimistic outlook. The new price target of $40 represents a considerable reduction from the previous $56, suggesting that Baird analysts foresee potential challenges or reduced growth prospects for Polaris in the near term.

Despite this negative development, it's worth noting that the overall analyst sentiment on Polaris remains mixed. According to FactSet, the average rating for PII stock is "hold," with a mean price target of $48.50. This indicates that while some firms like Baird have become more cautious, others may still see potential upside for the company. Investors will likely be closely monitoring any further analyst actions or company announcements for additional insights into Polaris's future performance.