Harley-Davidson, Inc. (HOG) is the world’s largest manufacturer of heavyweight motorcycles by market share, controlling half the U.S. market and a third of the global market. The company enjoys strong brand loyalty by maintaining a robust franchise.
The company’s restructuring actions have been effective in maintaining bottom-line growth, despite lower revenues. It also helped the company surpass the Zacks Consensus Estimate in the first quarter of 2010.
Furthermore, Harley’s Financial Services segment returned to profit after continuous losses since the fourth quarter of 2008. These factors have led us to upgrade the recommendation from Underperform to Outperform with a target price of $41.Zacks Investment Research
