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Checks with Harley-Davidson (NYSE:HOG) sellers forward of the corporate’s third quarter report left Baird with a much less bullish outlook, in response to a word launched on Wednesday.
The analysis word mirrored frustration amongst sellers about persistently lean stock ranges and slowing gross sales amid a harder macro backdrop. Moreover, after-effects of the manufacturing halt within the spring are apparently nonetheless being felt, with an anticipated backlog of shipments and gross sales not being realized.
“One supplier informed us, ‘The one pattern adversely impacting retail gross sales is the Motor Firm’s continued incapacity to ship new MY2022 items as scheduled. We’re nonetheless awaiting cargo of recent items that had been scheduled to be shipped in June – inexcusable!’,” the word learn.
72% of sellers contacted mentioned the stock ranges stay too low, whereas many extra lamented the missed alternatives by way of summer time gross sales. General, the survey mirrored considerably adverse sentiment amongst sellers on the 3-5 12 months outlook for gross sales.
Given these dynamics, Baird diminished EPS estimates for the approaching quarters, whereas reassessing the worth of LiveWire, which it warned will stay unstable. The agency took its value goal to $35 from a previous $45, however retained an “Outperform” ranking on the inventory.
Shares of Harley Davidson (HOG) fell 2.24% shortly earlier than the market shut on Wednesday. The decline on the day lowered the inventory into the purple on a 12 months thus far foundation.
Learn extra on LiveWire Group’s (LVWR) current market debut.
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