Key insights
- Morgan Stanley raised its price target for Harley-Davidson (HOG) to $15 from $12, citing cost-cutting measures and improved retail sales. While maintaining an Underweight rating, the firm acknowledges potential headwinds from broader industry demand and execution risks related to new product introductions. HOG's recent earnings showed mixed results, with a revenue beat but an EPS miss. Overall, the news suggests a slightly positive outlook for HOG, but broader market conditions and execution remain key risks.
Investing.com - Morgan Stanley raised its price target on Harley-Davidson stock (NYSE:HOG) to $15 from $12 while maintaining an Underweight rating on the shares.
The firm increased its forecasts to reflect management’s selling, general and administrative expense savings targets of $150 million and improved recent retail sales. Morgan Stanley’s projections remain below the company’s retail sales and 2027 EBITDA targets.
Harley-Davidson shares rose 4.9% since the company reported first-quarter 2026 results and gained 18.3% over the past three months. The S&P 500 rose 2.8% and 7.6% over the same periods.
The firm expressed caution on broader industry demand as motorcycles with engine displacement of 601cc and above declined at a 3% compound annual growth rate over the past decade. Morgan Stanley noted the company’s retail assumptions may introduce mix headwinds or execution risk if demand does not materialize as expected.
The firm said Harley-Davidson’s new medium-term targets for its motorcycle division are built on assumptions tied to new product introductions and growth initiatives that could support share recovery.
In other recent news, Harley-Davidson Inc. reported its first-quarter 2026 earnings on May 5, with mixed results. The company posted earnings per share (EPS) of $0.22, slightly below the expected $0.23. However, revenue exceeded forecasts, reaching $1.1 billion compared to the anticipated $1.01 billion. This revenue increase was attributed to strong performances in the Harley-Davidson Motor Company and LiveWire segments. Despite missing EPS expectations, the revenue beat reflects positive investor sentiment about the company’s growth potential. Analysts have noted these developments, with some firms maintaining a cautious outlook due to the EPS miss. The company’s performance in the first quarter highlights its ability to drive revenue growth despite challenges. These recent developments provide investors with critical insights into Harley-Davidson’s financial health and market position.
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