Harley-Davidson (HOG) Stock Slides on Ratings Downgrade

Harley-Davidson (HOG) stock is trading lower this morning after Stifel cut its rating on shares to 'hold' following the stock's recent run-up.
By Rachel Graf ,

NEW YORK (TheStreet) -- Shares of Harley-Davidson (HOG) - Get Report are slumping 0.64% to $48.23 in early-morning trading on Friday after Stifel downgraded the stock to "hold" from "buy."

The stock has climbed 7% so far this month amid buyout speculation, which places shares near Stifel's $50 price target.

The firm sees limited upside potential from current levels, and expects the motorcycle manufacturer to face "ongoing fundamental challenges" such as potentially weaker-than-expected second-quarter motorcycle sales, MarketWatch reports.

Additionally, Stifel is unconvinced about the economic feasibility of a potential purchase by private equity firm KKR & Co.

Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C+.

Harley-Davidson's strengths such as its revenue growth, notable return on equity and growth in earnings per share are countered by weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and weak operating cash flow.

You can view the full analysis from the report here: HOG

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

Loading ...