KeyBanc Starts Harley-Davidson (HOG) at Buy; Low Retail Inventory Levels Should Drive Robust 2H11 Shipments

KeyBanc initiates coverage on Harley-Davidson (NYSE: HOG) with a Buy. PT $48.00.

KeyBanc analyst says, "Our positive disposition is premised upon our belief that the current risk/reward proposition appears favorable in light of the recent pullback in the shares (-16% vs. -11% for S&P 500 during the last month) without a commensurate deterioration of the underlying fundamentals. Near term, we expect HOG to build on the recent positive inflection point in domestic retail sales trends and our channel checks have indicated that most dealers have not seen a material deceleration in traffic or shift in purchasing patterns over the past month."

"In addition, we are introducing 2011 and 2012 earnings estimates of $2.40 per share (First Call Consensus $2.35 per share) and $3.00 per share (First Call Consensus $2.96 per share), respectively."

For more ratings news on Harley-Davidson click here and for the rating history of Harley-Davidson click here.

Shares of Harley-Davidson closed at $37.06 yesterday.

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