HOG’s Cost Savings May Overshoot Estimates
Analysts at Deutsche Bank reiterate their "buy" rating on Harley-Davidson Inc (NYSE: HOG). The target price for HOG has been raised from $33 to $35.
Harley-Davidson expects to realize $100 million of savings through 2012 from its restructuring initiatives, in-line with the estimates. HOG has announced that it will incur restructuring costs of $100 million, significantly lower than the estimates.
Deutsche Bank continues to believe that its estimates would prove to be conservative as they do not factor $50 million of cost savings resulting from contract negotiations at HOG’s other production facilities.
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