Harley Falls on Sales Expectations in fourth quarter
Posted: Mon Dec 11, 2006 11:18 am
Harley Falls on Sales Expectations in fourth quarter
Monday, December 11, 2006 - Houston Chronical - The Associated Press - chron.com
NEW YORK — Shares of Harley-Davidson Inc. moved lower Monday as analysts predicted slower sales growth at the motorcycle maker in the fourth quarter.
In heavy afternoon trading, Harley-Davidson shares were down $1.81, or 2.6 percent, to $69.19 on the New York Stock Exchange, after falling as low as $69.05 earlier in the day.
Over the past year, Harley-Davidson shares have traded between $47.86 and $75.87.
RBC Capital Markets analyst Edward Aaron said a preliminary dealer survey indicates slower retail fourth-quarter growth.
"While retail activity is still decent, we believe Harley's retail growth moderated in the four quarter and is likely tracking somewhat below the mid single-digit range that investors typically consider neutral," Aaron wrote in a note to investors.
But the analyst said that a softer fourth quarter is unlikely to change the company's production plans, given that the quarter is traditionally a slow one, the company's strong sales during the riding season and that fact that its new product cycle is still in its early stages.
Aaron boosted his price target for the company's stock to $74 from $67.
"As long as management maintains its internal production targets, estimates for 2007 are more likely to go up than down from here," Aaron said.
Citigroup's Gregory Badishkanian said investors are expecting at least 6.7 percent growth in the fourth quarter _ on par with the third quarter _ but he thinks about 4 percent growth is more realistic.
If the 4 percent estimate is correct, it would likely result in a build up of dealer inventories, given the company's production guidance of a 6 percent to 9 percent increase, he said.
Monday, December 11, 2006 - Houston Chronical - The Associated Press - chron.com
NEW YORK — Shares of Harley-Davidson Inc. moved lower Monday as analysts predicted slower sales growth at the motorcycle maker in the fourth quarter.
In heavy afternoon trading, Harley-Davidson shares were down $1.81, or 2.6 percent, to $69.19 on the New York Stock Exchange, after falling as low as $69.05 earlier in the day.
Over the past year, Harley-Davidson shares have traded between $47.86 and $75.87.
RBC Capital Markets analyst Edward Aaron said a preliminary dealer survey indicates slower retail fourth-quarter growth.
"While retail activity is still decent, we believe Harley's retail growth moderated in the four quarter and is likely tracking somewhat below the mid single-digit range that investors typically consider neutral," Aaron wrote in a note to investors.
But the analyst said that a softer fourth quarter is unlikely to change the company's production plans, given that the quarter is traditionally a slow one, the company's strong sales during the riding season and that fact that its new product cycle is still in its early stages.
Aaron boosted his price target for the company's stock to $74 from $67.
"As long as management maintains its internal production targets, estimates for 2007 are more likely to go up than down from here," Aaron said.
Citigroup's Gregory Badishkanian said investors are expecting at least 6.7 percent growth in the fourth quarter _ on par with the third quarter _ but he thinks about 4 percent growth is more realistic.
If the 4 percent estimate is correct, it would likely result in a build up of dealer inventories, given the company's production guidance of a 6 percent to 9 percent increase, he said.