Deutsche Bank Maintains a 'Buy' on Harley-Davidson (HOG), Raises Estimates & Price Target
HOG Hot Sheet
Rating Summary:6 Buy, 2 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Deutsche Bank maintains a 'Buy' rating on Harley-Davidson (NYSE: HOG), raising estimates and price target to $33 from $26.
Deutsche analyst says, "HOG's plans include: 1) Cutting cost - HOG is targeting an additional $120MM-$150MM of annual cost savings ($0.30-$0.39 per share) by 2014, including the restructuring and/or closing the HOG's York production facility; 2) Focusing the business on a defendable core – HOG will discontinue its loss making Buell and MV Agusta brands, and; 3) Pursuing growth off of that base - HOG will focus on growing its core brands in existing markets, and it will add 100-150 international dealerships...We are raising our 2009 and > 2010 estimates to $1.09 and $2.10 from $0.97 and $1.85, based on HOG’s short-term cost performance, elimination of Buell and MV Agusta losses, and better than expected retail volume. While Harley Davidson maintained its FY09 gross margin guidance of 30.5%-31.5%, this guidance now incorporates $50MM of non-recurring dealer inventory costs related to the Buell closure (a 120 bps dilutive impact), implying that underlying performance is better than expected."
To see more analyst ratings on HOG Click Here.
Deutsche analyst says, "HOG's plans include: 1) Cutting cost - HOG is targeting an additional $120MM-$150MM of annual cost savings ($0.30-$0.39 per share) by 2014, including the restructuring and/or closing the HOG's York production facility; 2) Focusing the business on a defendable core – HOG will discontinue its loss making Buell and MV Agusta brands, and; 3) Pursuing growth off of that base - HOG will focus on growing its core brands in existing markets, and it will add 100-150 international dealerships...We are raising our 2009 and > 2010 estimates to $1.09 and $2.10 from $0.97 and $1.85, based on HOG’s short-term cost performance, elimination of Buell and MV Agusta losses, and better than expected retail volume. While Harley Davidson maintained its FY09 gross margin guidance of 30.5%-31.5%, this guidance now incorporates $50MM of non-recurring dealer inventory costs related to the Buell closure (a 120 bps dilutive impact), implying that underlying performance is better than expected."
To see more analyst ratings on HOG Click Here.
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