FOXF - Harley-Davidson upgraded at Jefferies after recent slide

2023-03-15 08:43:45 ET

Jefferies stepped away from its previously bearish rating on Harley-Davidson ( NYSE: HOG ) as a double-digit drop in recent days has balanced the risk/reward.

The team, led by Randal Konik and Anna Glaessgen, indicated that the stock’s nearly 14% drop in the past week has placed it at the $39 price target the team assigned in November 2022. As such, a Sell-equivalent rating is no longer appropriate.

“Our view on fundamentals is unchanged; we remain cautious on retail demand stabilization amid a shaky macro backdrop and risks stemming from HDFS (credit losses, rising rates),” the team explained. “The early inroads of the Hardwire strategy will be tested by a less favorable

backdrop over the next 6-18 months (COVID unwind + macro); bulls overlook the execution risk of extending beyond the core.”

A downside price target of $21 was maintained, with the team noting that a retail inflection failing to materialize could move shares markedly lower. The analysts indicated that Fox Factory Holding Corp. ( FOXF ) and Brunswick Corporation ( BC ) are preferable names in the powersports.

Shares of Harley-Davidson ( HOG ) rose modestly in premarket trading on Wednesday.

Read more on the company’s most recent earnings result .

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