Bank of America Securities analyst Alexander Perry reiterated a Buy rating on Harley-Davidson (HOG – Research Report) yesterday and set a price target of $32.00.
Alexander Perry has given his Buy rating due to a combination of factors that highlight Harley-Davidson’s strategic initiatives aimed at improving its long-term growth trajectory. Despite a decline in North American retail sales and shipments, the company reported a higher-than-expected gross margin, which indicates strong operational efficiency. Perry acknowledges the challenges in the current retail environment but believes that the strategic changes, such as the reintroduction of entry-level bikes, will expand Harley-Davidson’s market reach and attract a younger demographic.
Additionally, the shift in model year timing is expected to better align with the riding season, potentially boosting sales during peak periods. Although there are concerns about tariff impacts, Harley-Davidson’s significant U.S.-based sourcing and assembly operations mitigate these risks compared to its peers. These strategic adjustments, coupled with a favorable valuation, underpin Perry’s confidence in the company’s potential for long-term growth, justifying the Buy rating.
HOG’s price has also changed moderately for the past six months – from $31.870 to $23.040, which is a -27.71% drop .