Wells Fargo Analyst Reduces HOG Earnings
by 22% for FY 2011 and Increases Price Target
(How many shares of HOG is Wells Fargo
trying to unload?)
The Street Insider11/22/10
Wells Fargo continues to rate Harley-Davidson (NYSE: HOG) with an Outperform rating. The firm also lowered its EPS estimates for FY2010 to $1.22 from $1.35 and to $2 from $2.56 for FY2011. The firm is also raising its valuation range to $36-$39 from $35-$37.
Wells Fargo reports that, "Harley is well positioned as the global leader in the heavyweight motorcycle market given its iconic brand (image and lifestyle) and solid financials, in our view. We believe investors are yet to fully appreciate (1) Improving supply/demand that should allow for '12 shipments equal to retail sales, (2) Materially lower operating cost structure and significantly improving free cash generation, and (3) Positively skewed HDFS risk profile."