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The Word on the Street: Analyst Recommendations for Harley-Davidson

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Recommendations for Harley-Davidson

According to the latest Bloomberg consensus, 22.7% of analysts covering Harley-Davidson (HOG) gave the stock a “buy” recommendation while 59.1% of analysts gave it a “hold” recommendation. Only four analysts among the total 22 analysts recommended a “sell.”

Most Wall Street analysts might be maintaining a neutral to negative view on Harley-Davidson, as the company’s margins have been falling gradually along with a visible stagnation in its largest market, the US.

Investors should pay attention to analyst recommendations because 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 September 27, 2016, Harley-Davidson’s consensus 12-month target price was $52.25 with no major upside potential (just ~0.2%) from its market price of $52.14.

Among all popular analysts, Robin Farley of UBS and Adam Jonas of Morgan Stanley have the highest price target of $54 for the company, which represents a ~3.4% upside potential. Felicia R Kantor of Barclays expects Harley-Davidson to underperform the broader market and has given a low price target of $45.

Recommendations for other auto companies

As of September 27, 2016, analysts have the following 12-month return potential estimates for mainstream auto companies (FXD):

  • Honda Motor (HMC): 33.3% “buy” with an ~11.5% upside potential
  • General Motors (GM): 46.2% “buy” with a ~17.9% upside potential
  • Ford Motor (F): 32.0% “buy” with a 13.2% upside potential
  • Fiat Chrysler Automobiles (FCAU): 46.4% “buy” with 37.3% upside potential

For a thorough breakdown of Harley-Davidson’s business, check out Market Realist’s series An Investor’s Guide to Harley-Davidson: The Motorcycle Pioneer.

Continue to the next article for the analyst estimates for Harley-Davidson’s revenues in 3Q16 and beyond.

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