April 24, 2019 / 1:01 PM / a year ago

BUZZ-Harley-Davidson Inc: Skids as Goldman downgrades to "sell"

** Shares of Harley-Davidson down 2.8% to $37.85 premarket as Goldman says co “worst positioned” within brokerage’s Powersports coverage given its concentration in a “secularly declining” motorcycle market

** Analyst David Tamberrino downgrades to “sell” from “neutral” and cuts PT by $3 to $34

** Tamberrino says HOG needs to grow its customer base through rider academies along with incremental marketing spend

** Adds new product introduction into more crowded markets likely to pressure margins, and sees risk to credit arm, Harley-Davidson Financial Services, as interest rates rise

** Tamberrino also initiates Indian motorcycle maker Polaris with “buy” and starts Canadian all-terrain vehicle maker BRP Inc with “neutral”

** HOG shares fell 2% on Tues after co stuck with a cautious 2019 outlook, pointing to President Trump’s rows with Europe and China over tariffs

** Prior to HOG’s Q1 report on Tues, UBS warned co’s 2019 shipment prospects at risk after decline in Mar sales

** Avg rating of 22 analysts covering HOG is “hold”; 4 rate “buy” or stronger, 16 are neutral and now 2 recommend selling; median PT is $38.50 (Refinitiv data)

** Stock, which is up 14% YTD, threatening to fall for 4th straight session

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