Fiserv earnings missed by $0.61, revenue fell short of estimates
Investing.com - Morgan Stanley downgraded Harley-Davidson (NYSE:HOG) from Equalweight to Underweight on Monday, while lowering its price target to $25.00 from $27.00. According to InvestingPro data, the company currently trades at an EV/EBITDA multiple of 22.6x, supporting Morgan Stanley’s concerns about valuation.
The investment bank cited low pricing power and weak secular trends as key factors in its decision, placing Harley-Davidson at the bottom of its leisure framework analysis.
Morgan Stanley believes these challenges, combined with competitive pressures, will overwhelm any potential cyclical recovery in the motorcycle industry and lead to further downward revisions compared to consensus estimates.
The firm expects Harley-Davidson’s valuation multiples to shift from current levels of 7x EV/EBITDA and 10x P/E to 7x and 9x respectively in its forward 24-month methodology.
The new price target of $25 represents approximately 10% downside potential from Harley-Davidson’s current trading price.
In other recent news, Harley-Davidson Inc. reported a 19% decline in consolidated revenue for the second quarter of 2025. The company’s earnings per share (EPS) were reported at $0.88. Despite these financial challenges, Harley-Davidson’s stock showed resilience on the day of the earnings announcement. Analysts and investors are closely watching these developments, as the company navigates a tough economic environment. The revenue decline highlights the ongoing challenges faced by Harley-Davidson in maintaining its market position. While the EPS figure provides some insight into the company’s profitability, the overall revenue drop remains a significant concern. These recent developments are crucial for investors to consider when evaluating Harley-Davidson’s financial health and future prospects.
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