Harley-Davidson (HOG, $39.95) stock slackens, after analysts downgrade it

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.

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Sergey Savastiouk|Expert

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.