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On Friday, Citi analysts adjusted their outlook on Harley-Davidson stock (NYSE:HOG), increasing the price target to $24.00, up from the previous $23.00, while keeping a Neutral rating on the shares. Currently trading at a P/E ratio of 8.2x and below book value, InvestingPro analysis suggests the stock is fairly valued. The revision follows Harley-Davidson’s first-quarter earnings report, which showcased a robust margin performance that helped to counterbalance retail challenges in North America and Japan.
The company’s recent financial results revealed that despite a tough retail environment, Harley-Davidson’s margins remained strong, with a gross profit margin of 26.6%. The company has maintained dividend payments for 33 consecutive years, demonstrating financial resilience. Citi’s analysts pointed out that the company’s management has withdrawn their financial guidance, citing the ongoing uncertainty surrounding tariffs and unpredictable consumer demand. This decision reflects the complex conditions that Harley-Davidson is navigating, including geopolitical shifts, executive and board changes, and dealer network dynamics. For deeper insights into HOG’s financial health and future prospects, InvestingPro subscribers can access comprehensive analysis and additional metrics.
The analysts noted that the first-quarter results and the management’s commentary were relatively uneventful amid the company’s current challenges. The stock has declined by 26.8% over the past six months, while analyst targets range from $23 to $35. The slight increase in the price target from $23 to $24 is attributed to the outcomes of Liberation Day, which, according to Citi, were somewhat less detrimental than anticipated. This adjustment also takes into account the market’s modestly improved expectations for better trade relations moving forward.
Harley-Davidson’s performance in the first quarter has been significant enough to prompt a small yet positive adjustment in Citi’s valuation of the stock. While the company faces ongoing challenges, the market’s reaction to potential trade improvements has been cautiously optimistic, as reflected in the new price target set by Citi analysts. Harley-Davidson continues to operate in a complex business environment, with factors such as tariffs and demand fluctuations influencing its strategy and financial projections.
In other recent news, Harley-Davidson Inc. reported impressive financial results for the first quarter of 2025, exceeding analyst expectations. The company achieved an earnings per share (EPS) of $1.07, surpassing the forecasted $0.81 by 32%. Revenue also exceeded projections, reaching $1.33 billion compared to the anticipated $1.11 billion. Despite a 23% year-over-year decline in consolidated revenue, Harley-Davidson demonstrated strong operational management and cost efficiency. The company has withdrawn its 2025 financial guidance, citing economic uncertainty and potential tariff impacts. Additionally, Harley-Davidson remains committed to capital expenditures between $200 million and $225 million and plans to repurchase $1 billion in shares by the end of 2026. The company is also actively evaluating its investment in LiveWire, with plans to drive significant cost savings and reduce cash burn. Meanwhile, Harley-Davidson Financial Services (HDFS) delivered a 19% increase in operating income, with discussions around potential strategic partnerships ongoing.
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