UBS Cools On Harley-Davidson Shares As They Approach Target Price

Analysts at UBS told investors in a note that Harley-Davidson Inc HOG, at its current market value, reflects a fair amount of the value they see in the issue. Therefore, they downgraded the company from a Buy to Neutral.

UBS takes no position on the reports from Friday of a potential takeover of Harley-Davidson. The only value the analysts see is in the high free cash flow, brand name, and under-levered balance sheet. They also make mention of share repurchases and that any additional repurchases could drive earnings higher, but caution that with shares priced as they are, more buybacks may be unlikely short-term.

UBS holds their $57 12-month price target on Harley shares. With a Wednesday closing price of $47.37, the stock has fallen enough this week to offer 20 percent upside in the view of UBS.