Summary

  • Analysts upgraded Harley-Davidson to a ‘buy’ rating, leading to a mean recommendation rating of 2.1 on the stock on EODHD/Others.
  • A. Davidson renewed its rating on HOG from ‘neutral’ to ‘buy’ and revised its price target on HOG to US$47.
  • Broker D.A. Davidson announced that HOG’s performance has exceeded the Q2 2023 U.S. retail sector expectations.

Harley-Davidson (NYSE: HOG) received a rating upgrade from brokers ahead of the company’s earnings release, resulting in an upward revision in its stock price on Friday. HOG saw an increase of 4.8% in its price as D.A. Davidson renewed its rating on the stock.

The company will release its earnings report for the second quarter of 2023 on July 27, 2023, before market hours. With a market cap of over US$5 billion, Harley-Davidson is globally recognized as a leading motorcycle manufacturer. The company also provides financing solutions to dealers and customers through its Harley-Davidson Financial Services division.

EODHD/Others data suggests that HOG has a mean recommendation rating of 2.1 on a scale of one to five. Here, one represents a ‘strong buy’ rating and five represents a ‘strong sell’ rating. The consensus mean price target on the stock was US$45, as of July 21, 2023.

HOG Price Chart; Image Source: HOG EODHD/Others

The stock closed at US$37.29 on Friday, July 21, 2023. It hit its 52-week high of US$51.77 on February 2, 2023.

HOG’s stock price crosses 3-month high on Friday

D.A. Davidson raised its rating on HOG from ‘neutral’ to ‘buy’ leading to a surge in the price of the stock to US$38.34. This marked the stock’s highest price in around three months.

The broker also raised its price target on the stock from US$38 to US$47, which marks an upside potential of 26.04% on Friday’s closing price.

As per EODHD/Others data, fifteen analysts have covered the stock, of which five have given it a ‘strong buy’ rating, three have given it a ‘buy’ rating and seven have given it a ‘hold’ rating. None of the analysts have given it a ‘sell’ or ‘strong sell’ rating.

Longbow Research also revised its rating on the stock to ‘neutral’ on July 21, 2023. Meanwhile, Raymond James upgraded its rating on the stock to ‘market perform’ on July 11, 2023, as per data available on EODHD/Others.

Analysts expect HOG to surpass low expectations around retail

As per D.A. Davidson, recent checks have suggested that Harley-Davidson’s performance has been better than the outlook for the overall U.S. retail sector in Q2 2023. The broker also stated HOG’s mid-year 2022 inventory clearance has put it in a positive light among analysts.

Alongside these indicators, D.A. Davidson also stated that dealer feedback on HOG’s new product introductions is positive. These factors could potentially lead to the company exceeding the increasingly low expectations of 2Q23 earnings and outlook for the retail sector. 

Harley-Davidson reported a 20% increase in consolidated revenue for the first quarter of 2023 to US$1.78 billion. It also reported an operating revenue of US$370 million, which was 28% higher than the previous corresponding period. Meanwhile, the company’s net income also rose 37% year-on-year during Q1 2023 to US$304 million.

Image source: ©2023 Kalkine®; Data source: Company Reports

For the full year 2023, HOG expects revenue growth of 4% to 7% and capital investments of US$225 to US$250 million.