Harley-Davidson Downgraded by Goldman Sachs

12/18/2009 @ 12:56 pm, by Jensen Beeler15 COMMENTS

wall-street

It’s been a rough outing in the stock market for Harley-Davidson recently as in the past 10 days the company has seen to substantial hits to its stock price. First the company was hit by the news that it would be recalling over 110,000 motorcycles for faulty fuel tank mounts. And now, the latest bad news comes in the form of a downgrade by financial powerhouse Goldman Sachs, which has downgraded their opinion of Harley-Davidson from “neutral” to “sell”. More after the jump.

Making the announcement even worse is the fact Goldman Sachs has placed Harley-Davidson on their infamous “conviction sell” list, which is a listing of stocks theĀ investment bank’s research team expects to lag compared to market estimates. As such Goldman Sachs expects to see the stock hit a ceiling of $23 per share, noting the continuing decline in sales, and now impending recall as its source of reasoning.

HOG stock has been doing well over the past months, which has some analysts pitting the Milwaukee company as having a ceiling of $30 per share. However, Goldman sachs is quick to point out that a considerable amount of that growth and investment is coming from investors who are shorting the stock, which is an anticipation of it actually dropping further over time, and not from investors who believe Harley-Davidson will be a strong long-term investment.

Source: Goldman Sachs

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  • Jim

    Difficult to be a one trick pony when your market erodes and the customer moves on. I wonder if there are some old timers at HD who now regret selling off Holiday Rambler rather than trying to make it work. A little diversification would be helpful.

    A new parlor game, what conglomerate would be interested in buying HD?

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