How Analysts Are Rating Harley-Davidson Stock after Its Q1 Report

Analysts’ ratings on Harley-Davidson

According to the latest data compiled by Thomson Reuters, ~18% of the analysts covering Harley-Davidson (HOG) stock have given it “buy” recommendations. While 77% of analysts have given HOG “hold” recommendations, the remaining 5% have given it “sells.”

These recommendations are based on the consensus views of 22 analysts covering Harley-Davidson as of April 23.

How Analysts Are Rating Harley-Davidson Stock after Its Q1 Report

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To learn more about Harley-Davidson’s overall business, read An Investor’s Guide to Harley-Davidson: The Motorcycle Pioneer.

Expected returns in the next 12 months

As of April 23, Wall Street analysts’ consensus 12-month target price for HOG was $39.36, which reflected a marginally positive return potential of ~1.1% from its current price of $38.92.

Investors should pay attention to analysts’ ratings, as they can affect a company’s stock price. If a popular analyst changes his or her view, it could result in a significant short-term movement in a company’s price.

Key possible reasons for analysts’ pessimism

In the last year, a higher percentage of Wall Street analysts have adopted a cautious approach on Harley-Davidson. About a year ago, analysts’ consensus target price for Harley stock was much higher at $49.43, and it has now fallen to $39.36.

So far, the company has failed to revive its home market or international market shipments and retail sales. Rising raw materials prices, steep trade tariffs, and a negative product mix could worsen HOG’s profitability further in the coming quarters.

In the next couple of days, auto companies (FXD) such as Tesla (TSLA) and Ford Motor Company (F) will be releasing their first-quarter earnings reports. Visit Market Realist’s Autos page to stay updated on analysts’ estimates for auto companies’ first-quarter earnings results.