In a research note on Tuesday, Citi analysts upgradedHarley-Davidson’s stock and revved up their price target for the iconic motorcycle maker.
Analysts changed its rating for the company to “buy” from “hold” and raised the price target to $55 from $50.
During the last few months, the company’s stock has increased due to strong fourth-quarter sales results. Analysts expect retail sales momentum to rise even more in the first quarter.
“We would have expected March to have meaningfully slowed, given demand was pulled forward into December to February with warm weather,” the report said. “Excluding warm weather for the quarter, we sense the underlying sales momentum remains strong.”
The report added that Citi’s dealer checks suggested that retail inventories remain lean, which should bring some scarcity back to the company’s brand.
“We are impressed with management’s focus on maintaining inventory discipline, as well as its ability to drive sales,” the report said. “In addition, retail credit availability has remained stable to slightly improved over the last few months.”Page 1 of 3 | Next Page