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Investing.com - Citi has reiterated its Neutral rating and $27.00 price target on Harley-Davidson (NYSE:HOG) stock as the iconic motorcycle manufacturer navigates multiple challenges and transitions. According to InvestingPro data, the stock is currently trading near its Fair Value, with a P/E ratio of 9.15 and a dividend yield of 2.87%.
The company faces significant uncertainty including recent tariff concerns, a proxy battle from a major shareholder, and the announced retirement of CEO Jochen Zeitz, according to Citi analyst James Hardiman.
Additional complications include potential monetization of Harley-Davidson Financial Services assets and the end of financing for the Livewire electric motorcycle division.
Citi notes that major strategic decisions are likely on hold until new leadership is established, as "a new CEO would need to be in place to truly make any long-term decision with regards to the company and its segments or assets."
The research firm concludes there is "no silver bullet" for addressing Harley-Davidson’s challenges, and investors will need to wait for clarity on the company’s future direction under new leadership.
In other recent news, Harley-Davidson reported first-quarter earnings that exceeded expectations, although the company withdrew its financial guidance for fiscal year 2025, which is often interpreted negatively by the market. Despite this, DA Davidson maintained a Buy rating for Harley-Davidson with a $31 price target, highlighting factors such as new motorcycle models and resolved proxy fights as potential positives for the company’s future. Additionally, Harley-Davidson confirmed the election of all nine director nominees at its 2025 Annual Meeting of Shareholders and continues its search for a new CEO.
The company is currently engaged in a proxy battle with H Partners, who have challenged the current board and CEO. Harley-Davidson has urged shareholders to support its director nominees and criticized H Partners for withdrawing from the CEO selection process. Proxy advisory firm Institutional Shareholder Services (ISS) has endorsed Harley-Davidson’s board nominees, praising the leadership of CEO Jochen Zeitz and the company’s Hardwire Strategic Plan for stabilizing operations.
Harley-Davidson disputes recommendations from proxy advisory firms Glass Lewis (JO:LEWJ) and Egan-Jones, which opposed its director nominees, while ISS supports them. The company emphasizes its strategic initiatives and governance, asserting that removing certain board members could pose risks. Harley-Davidson continues to focus on its vision of being the most desirable motorcycle brand and advancing in both traditional and electric motorcycle markets through its LiveWire brand.
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