Harley-Davidson, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst James Hardiman from Citi maintained a Hold rating on the stock and has a $27.00 price target.
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James Hardiman has given his Hold rating due to a combination of factors affecting Harley-Davidson’s current and future performance. One significant issue is the ongoing uncertainty surrounding tariffs and the company’s leadership, particularly with the announced retirement of CEO Jochen Zeitz. This leadership change adds to the uncertainty, as a new CEO would need to establish a long-term vision for the company, which is currently lacking.
Additionally, while there has been a slight improvement in domestic retail sales compared to the previous quarter, the overall demand remains weak. Inventory levels at dealerships are reported to be comfortable, yet this does not align with data showing an increase in new Harley listings. Furthermore, Hardiman’s full-year estimates remain unchanged, with expectations slightly below market consensus for the coming years. These factors contribute to the Hold rating, as there is no clear path to resolving the company’s challenges in the near term.