Harley-Davidson price target raised to $34 from $31 at DA Davidson

Investing.com - DA Davidson raised its price target on Harley-Davidson (NYSE:HOG) to $34.00 from $31.00 on Monday, while maintaining a Buy rating on the motorcycle manufacturer’s stock. The stock currently trades at $28.70, showing strong momentum with positive returns over both one-week (+3.68%) and six-month (+9.61%) periods. According to InvestingPro analysis, the company maintains a FAIR financial health score.

The price target increase follows Harley-Davidson’s Q2 earnings miss, which was overshadowed by the announcement of a transaction involving Harley-Davidson Financial Services (HDFS) with KKR and PIMCO.

DA Davidson described the HDFS deal as "clearly transformational," noting it will strengthen Harley-Davidson’s balance sheet while unlocking more than $1 billion in cash and providing additional financial flexibility.

The firm also highlighted several "underappreciated catalysts" for the company, including inventory reduction, sequential retail strength, and the introduction of a new $6,000 motorcycle model.

The new $34 price target is based on 12.4 times DA Davidson’s fiscal year 2026 earnings per share estimate for Harley-Davidson.

In other recent news, Harley-Davidson has reported its second-quarter earnings for 2025, revealing a mixed financial performance. The company exceeded revenue expectations with a robust $1.31 billion, surpassing the anticipated $1.1 billion by 19.09%. However, earnings per share (EPS) fell short of expectations, coming in at $0.88 compared to the forecasted $0.96. Additionally, Harley-Davidson announced the appointment of Arthur Starrs as the new President and Chief Executive Officer, effective October 1. Starrs, who is currently the CEO of Topgolf International, will also join the company’s board on the same date. This leadership change follows Jochen Zeitz’s tenure as CEO and chairman since 2020. The market responded positively to these developments, with Harley-Davidson’s stock experiencing significant movement. These recent changes mark a pivotal moment for the company as it navigates its future strategies.

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