HOG - Harley Davidson 'likely underperforms expectations' in Q2 earnings - D.A. Davidson

Harley Davison ( NYSE: HOG ) should be viewed cautiously ahead of its upcoming earnings release, according to D.A. Davidson analyst Brandon Rolle.

In an initiation note authored on Friday, the analyst warned that the mid-May suspension of production is likely underestimated by the market and could lead to a guidance reset in the second quarter earnings report. He noted that channel checks suggest demand for Harley Davidson ( HOG ) products remain generally mixed, adding to trepidation about macroeconomic deterioration that could pressure the business. In particular, he wrote that margin revisions are more than likely.

As such, Rolle suggested clients remain on the sidelines ahead of the results ahead of the earnings report anticipated for late July. He initiated the stock at a “Neutral” rating alongside a $35 price target, only modestly higher than Friday’s opening price.

Despite the cautious take from D.A. Davidson, the stock rose about 2% shortly after the market open on the final day of trading prior to the July 4 holiday.

Read more on the earnings expectations for the upcoming quarterly report .

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