Is HOG A Hog? Wedbush Says 2015 Story Intact

on Thursday reported its fourth-quarter results in which the company earned $0.35 per share, a penny better than the Street's estimates but a penny short of what James Hardiman of Wedbush expected. “While sales came up somewhat short of expectations due to weaker retail and a 2.5 percent foreign exchange headwind, margins were in line with expectations and the company received a nickel tax benefit (versus our numbers) due to the extension of the R&D tax credit,” Hardiman wrote in a note on Friday. Hardiman notes that the company will see upside in 2015 driven by the reintroduction of the Road Glide, as well as the growing significant of the new Street line. The analyst adds that gross margin is guided to be up slightly in 2015 and that Harley-Davidson remains a favorite name given the underestimated earnings power in both the short and long-term due to the company's renewed focus on product innovation. Shares are Outperform rated with an $85 price target. Shares of Harley-Davidson traded recently at $62.62, down 3 percent.