Market Overview

Morgan Stanley Suggests Buying The Weakness In Harley-Davidson

Share:
Related HOG
Is HOG A Hog? Wedbush Says 2015 Story Intact
Harley-Davidson Ticks Up On Unexpectedly High Q4 Revenue
Dividend Champions For March 2015 (Seeking Alpha)

Shares of Harley-Davidson (NYSE: HOG) are trading up 1.26 percent after spiking lower at the opening bell Wednesday morning. The rally may be due to a bullish note from Morgan Stanley analyst Adam Jones.

In the note, Jones said the company's "very strong" margin performance in the second quarter was more than offset by a downward fiscal-year shipment revision. This has caused Jones to cut his volumes expectations for the second half of 2014 by nine percent and his full-year 2014 EPS estimate by four percent to $3.85, as well as a slight decrease to his price target from $80 to $77.

Despite these revisions, Jones has maintained an Overweight rating and suggests buying the weakness in the company's shares. To emphasize this point Jones wrote, "The chance to buy this quality, cash flow generating company (with practically zero China exposure) at a discount to the market despite US motorcycle sales nearly 40 percent below previous peak is a unique opportunity."

Latest Ratings for HOG

DateFirmActionFromTo
Jan 2015Deutsche BankMaintainsHold
Nov 2014Goldman SachsUpgradesNeutralBuy
Oct 2014BarclaysMaintainsEqual-weight

View More Analyst Ratings for HOG
View the Latest Analyst Ratings

Posted-In: Adam Jones Morgan StanleyAnalyst Color Price Target Reiteration Analyst Ratings

 

Related Articles (HOG)

Around the Web, We're Loving...

Get Benzinga's Newsletters

Our Experts vs. S&P 500Powered by Benzinga
Marketfy Products Return S&P 500
Morning Profit Maker 42.72% 6.69%
The Option Prophet 91.14% 6.69%
SecretCaps 26.55% 6.69%
Short-Term Trend Trading 11.89% 6.69%
View the highest rated products→