Wells Fargo analysts downgraded Harley-Davidson stock, leading to shares of the iconic motorcycle brand dropping -2% on the news Monday.
The analysts lowered their rating to “market perform” from “outperform”. Analyst Timothy Conder indicated that the risk-reward profile for Harley-Davidson is less attractive at existing levels. He also warned of challenges on pricing/supply dynamics for the entire industry – not just Harley-Davidson. He also mentioned that there is a growing consumer tilt toward mid-sized and smaller motorcycles.
Nevertheless, Conder raised his price target on the motorcycle company's stock to $41 per share from $40. That represents a 2% upside from the stock's previous closing price of $40.31.