UPDATE: Morgan Stanley Initiates Harley-Davidson with Overweight on Housing Cycle Ties
In a report published Monday, Morgan Stanley analyst Adam Jonas initiated coverage on Harley-Davidson (NYSE: HOG) with an Overweight rating and $62.00 price target.
In the report, Jonas noted, “Morgan Stanley's bullish view on US housing can translate into a high single-digit volume CAGR for HOG. Competitive, flexible manufacturing footprint. HOG's $0.5bn restructuring since 2009 has seen a 50% cut in the hourly workforce and implementation of ERP and flexible manufacturing where 30% of the workers can be seasonal. HOG has generated significant free cash flow to equity holders for 18 of the past 20 years and we expect $1bn of FCF on average through 2017.”
Harley-Davidson closed on Friday at $54.35.
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