HOG - Harley-Davidson seen delivering less volume but higher margins

UBS takes a constructive view of Harley-Davidson ([[HOG]] +3.8%) for investors with some patience. Analyst Robin Farley: "We believe Harley's US retail could be positive next year, still in line with its long-term retail decline, but bouncing off the deep retail decline of 2020. We saw similar increases after the 2009 economic downturn as Harley returned to the declining trend line it had experienced going into the recession."Farley also says that Harley may only need to restock in 2021 a level of bikes that is equal to about 6% of sales. "Given our expectation for HOG to reduce available models, reduce dealer count, and exit some international markets, coupled with minimal inventory replenishment in 2021, we believe consensus shipments may need to come down 9%, downside that will likely be realized when HOG gives financial guidance for its Hardwire plan. But our margin estimate puts our est above consensus for

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Harley-Davidson seen delivering less volume but higher margins