Harley-Davidson's (HOG) second quarter results left analysts mixed. The company's earnings beat Wall Street's expectations, but a sagging overall industry and unimpressive guidance suggest an unclear road ahead for the Milwaukee-based company.
Barclays doesn't see challenges for Harley-Davidson disappearing any time soon, but it's unlikely Harley will face a buyout. Declining growth rates and industry metrics that are slowing as the current rider population ages suggest it would be difficult for a buyer to obtain a favorable return in a Harley deal.
Barclays gave Harley an "underweight" stock rating and a price target of $45, down 8% from the stock's closing price Tuesday.
But BMO Capital Markets said Harley has the right strategy even though its sales decreased in the second quarter. Bad weather that shortened the riding season and kept foot traffic from open houses isn't a reason to give up on the stock. Plus new product, including the 2018 model year celebrating the bikes' 115th anniversary, has stirred "buzz" in the industry.
BMO remains positive on Harley, despite disappointing second quarter metrics. They gave Harley an "outperform" rating and $56 price target.
Harley-Davidson stock traded down over 1% Wednesday morning.
More of What's Trending on TheStreet:
- Carly Fiorina's Advice to Young Women: Don't Let Other People Define You
- 10 Reasons Working From Home Might Be the Wave of the Future
- T-Mobile's John Legere Is Inarguably One of the More Colorful CEOs on Twitter
- Restaurant Brands 36-Year Old CEO Discusses the Burger King Whopper, Amazon's Jeff Bezos
- Amazon Faces a Potential Existential Threat That Could Hammer Its Shares, Doug Kass Reveals
- Game of Thrones Has Become Huge -- Here's How You Can Quickly Tell