30 Nov

Analysts’ Target Price for Harley-Davidson Drops

WRITTEN BY Jitendra Parashar

Harley-Davidson

This year, Harley-Davidson (HOG) stock has fallen ~15.9%. The stock fell 15.6% in October alone, but has recovered by 12.0% this month. In comparison, auto stocks (XLY) Honda (HMC), Ford (F), and Ferrari (RACE) have fallen 1.6%, 1.5%, and 7.5% month-to-date, respectively. In 2017, HOG held the largest share of the US heavyweight motorcycle market, but underperformed other auto stocks and fell ~12.8%.

Analysts’ Target Price for Harley-Davidson Drops

Targets for HOG dropped

Of the Reuters-surveyed analysts covering Harley-Davidson stock, 71% recommend “hold,” 24% recommend “buy,” and 5% recommend “sell.” Their consensus target price for Harley-Davidson is $42.60, slightly lower than its market price of $42.80. A month ago, their target price was $47.23.

Harley’s sales weakness

In the third quarter, HOG’s adjusted EPS rose ~95% YoY (year-over-year) to $0.78, and its motorcycle revenue rose 16.8% YoY with the help of a 16.7% YoY rise in its global motorcycle shipments. The company’s worldwide retail sales fell 7.8% YoY to 59,226 units, with its US retail sales falling sharply by 13.3% YoY and its international retail sales rising 2.6% YoY. Harley has been struggling to revive sales in its key markets for the last three years, with no signs of relief so far.

At the end of the second quarter, Harley-Davidson decided to shift the production of motorcycles for the European market from US factories to international factories to avoid steep tariffs. This move didn’t please Donald Trump, who warned HOG on Twitter that if it were to move production internationally, it “will be taxed like never before!” Continue to the next part, where we’ll compare mainstream automakers’ valuation multiples this month.

Latest articles

19 Jul

Afya's IPO Sees Strong Listing Gains

WRITTEN BY Mohit Oberoi, CFA

Afya (AFYA) listed on the Nasdaq Global Select Market on July 19. The company priced its IPO at $19 per share.

19 Jul

What to Watch For in Amazon's Q2 Earnings

WRITTEN BY Sanmit Amin

e-Commerce giant Amazon (AMZN) is scheduled to report its second-quarter earnings results after the closing bell on July 25.

19 Jul

Barrick Gold Reaches Deal to Buy Acacia Mining

WRITTEN BY Anuradha Garg

After a long standoff, Barrick Gold (GOLD) and Acacia Mining (ABGLF) have reached an agreement.

19 Jul

Comcast Shares Pop on Goldman's Optimism

WRITTEN BY Ruchi Gupta

Comcast (CMCSA) shares popped after Goldman Sachs issued a positive note on the company recently. Goldman upgraded its rating for Comcast to "buy" from "hold."

19 Jul

Why Analysts Are Bearish on Netflix Stock

WRITTEN BY Aditya Raghunath

Netflix stock fell over 10.0% on Thursday and is down 0.5% today as well.

On Thursday, pet retailer Chewy (CHWY) reported its first-quarter results after the market closed. The company reported its earnings for the first time.