Bitcoin price today: slides below $100k, enters bear market amid valuation jitters
Investing.com - UBS maintained its Neutral rating and $28.00 price target on Harley-Davidson (NYSE:HOG) amid concerns about declining retail sales. With the stock currently trading at $26.89, InvestingPro data suggests the company may be overvalued compared to its Fair Value, despite trading at a reasonable P/E ratio of 13.86.
UBS analyst Robin Farley indicated that Harley-Davidson’s U.S. retail sales for Q3 may have decreased by double digits, performing worse than the mid-single-digit industry decline reported by Polaris for its Indian brand. This aligns with an InvestingPro tip highlighting that analysts anticipate sales decline in the current year, with data showing revenue already down 24.81% over the last twelve months.
The analyst noted a potential disconnect in investor expectations, as Polaris defines the industry as motorcycles with 900+cc engines, while Harley-Davidson typically uses a 600+cc definition, meaning investors might be anticipating a mid-single-digit decline but could see double-digit drops instead.
This development contradicts Harley-Davidson’s July statement that it expected retail sales to turn positive in the second half of 2025, as the company would be comparing against declines of 10.3% in Q3 2024 and 14.8% in Q4 2024.
UBS believes Harley-Davidson has reduced planned shipments for November and December, which would have reached dealers in December and January, potentially including new model year 2026 motorcycles, suggesting downside risk to consensus estimates that project 3.5% shipment growth next year, while UBS forecasts flat shipments.
In other recent news, Harley-Davidson reported a 19% decline in its second-quarter revenue for 2025. The company’s earnings per share were recorded at $0.88. Despite these challenging financial results, Harley-Davidson’s stock price showed resilience on the day of the earnings announcement. In a separate development, Morgan Stanley downgraded Harley-Davidson’s stock from Equalweight to Underweight. The investment bank also reduced its price target for the company from $27.00 to $25.00. Morgan Stanley cited low pricing power and weak secular trends as reasons for this decision. These recent developments highlight some of the challenges Harley-Davidson is currently facing.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.