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What Analysts Recommend for Harley-Davidson ahead of 1Q16 Results

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Updated

Analysts’ recommendations for HOG

According to the latest Bloomberg consensus, 30.4% of analysts covering Harley-Davidson (HOG) gave the stock a “buy” recommendation while 65.3% of analysts gave it a “hold” recommendation. Only one analyst among the total 23 analysts recommended a “sell.”

Most Wall Street analysts have a mixed view on Harley-Davidson, as the company has been facing intensifying competition from Japanese motorcycle manufacturers in markets outside North America. Going forward in 2016, it will be interesting to see how soon the company can bring in additional innovation to stay ahead of the competition.

Investors should pay attention to analyst recommendations, as they may affect the company’s stock price movement. If popular analysts change their views, a significant short-term movement in the stock price could occur.

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Target prices

As of April 6, 2016, Harley-Davidson’s consensus 12-month target price was $48.67 with an upside potential of ~9% from its current market price of $44.62.

Among all popular analysts, Robin Farley of UBS has the highest price target of $57 for the company, which represents a ~27% upside potential. Kevin Milota of JPMorgan Chase and Brian Johnson of Barclays expect Harley-Davidson to underperform the broader market.

Recommendations for other auto companies

Analysts have the following 12-month return potential estimates for other auto companies (FXD):

  • 66.7% of analysts gave Honda (HMC) a “buy” with a 27.8% upside potential.
  • 52.2% of analysts gave General Motors (GM) a “buy” with a 27.1% upside potential.
  • 47.8% of analysts gave Tesla Motors (TSLA) a “buy” with just 2% upside potential. Recently, the company unveiled its first mass-market vehicle Model 3.
  • 40.9% of analysts gave Ford Motor Company (F) a “buy” with 18.3% upside potential.
  • 62.5% of analysts gave Ferrari (RACE) a “buy” with 12.2% upside potential.

Continue to the next article to find out analysts’ estimates for Harley-Davidson’s revenues in 1Q16 and beyond.

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