Motorcycle maker should recover from bump in road

Q: Does Harley have any vroom left?

- Matt Krantz USA TODAY

A: Harley-Davidson (HOG) shares stalled out Tuesday after the company’s disappoint­ing quarter. But analysts still think the stock has room ahead of it.

The motorcycle maker disappoint­ed investors Tuesday after announcing flat quarterly profit of 69 cents a share, missing expectatio­ns by 10%. The company’s quarterly revenue of $1.14 billion was less than 1% higher than it was a year ago. More concerning, though, was the company’s less-than-bullish guidance. Harley now expects to ship between 265,000 and 270,000 motorcycle­s this year, which is flat to down 2% from 2014’s levels.

Investors are worried about the company losing market share in the U.S., largely from Japanese manufactur­ers. Disappoint­ment after disappoint­ment pushed the shares down roughly $8 a share, or almost 14%, to $48.25 Tuesday.

Analysts may need to readjust their models following the company’s disclosure, but so far, most are seeing this as just a bump in the road. Analysts are calling for adjusted profit to jump 17% in fiscal 2016 and give the stock an average rating of “outperform.”

And thanks to the stock’s big fall, that leaves more room for potential upside. Analysts think the stock will be worth $65.79 a share in 18 months.

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