HOG - Harley Davidson viewed cautiously at Citi due to 'elusive' retail demand

A weakening consumer constrained Citi analyst James Hardiman’s rating on Harley-Davidson ( NYSE: HOG ) stock, he explained in an initiation of the stock at “Neutral.”

“We believe that retail trends are generally weakening while wholesale trends are finally strengthening, a positive combination for 3Q but a sign of caution for 2023,” he explained.

While he noted that the Wisconsin-based motorcycle manufacturer’s ‘Rewire’ and ‘Hardwire’ strategies have “undeniably improved the margin profile of the company”, retail demand has remained “elusive” and will likely impact guidance. Hardiman added that a projection of macro deterioration into 2023 is enough to hold back the team from recommending the name.

As such, a Neutral rating was assigned to the stock alongside a $40 price target. Shares of Harley-Davidson ( HOG ) drove about 1.06% higher in premarket action.

Read more on earnings expectations for the company ahead of its Q3 report on Wednesday .

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