Harley Davidson: Don't Go Hog Wild Just Yet

Raymond James upgraded Harley-Davidson (HOG) on Wednesday, but the firm still doesn’t think it’s a Buy.

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Analysts Joseph Altobello and Kevin Ruth upgraded it from Underperform to Market Perform today, writing that while their data show continued flattish sales, the company will get relief in the form of easier comparisons this quarter and next. 

They write that risks remain, but guidance is at least realistic and expectations are reasonable.

More detail from the note: 

Our slightly more constructive view of the shares of Harley-Davidson is based on our belief that the near-term trading setup for the stock is improving owing to a combination of easier comparisons, potential demand tailwinds and realistic expectations, and should therefore serve to limit downside risk. That said, risks such as further motorcycle industry weakness and HOG’s credit exposure through its retail lending subsidiary, as well as longer-term secular headwinds and a fair valuation, keep us at a neutral stance.

Harley-Davidson is down 0.8% to $ 61.54 in recent trading.

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Craig Ballantyne

I love anything to do with Harley Davidson and have two beautiful children and a beautiful partner. In my spare time i like building websites and love anything to do with the internet.

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