Harley Davidson: industry outlook

Company Business

Harley-Davidson is the leading factor in the U.S. heavyweight cycle marketplace with a 45 percent market share. HDI holds a 28 percent world market share in that class.

Summary and Recommendation

·Shares of this Pershing Recommended make Selection weakened as a result of counsel taking a conservative stance in formulation 2004 doing volumes. HDIs position is delinquent to the possibility that the start-up of a sassy plant and the introduction of new models could hurt production. It is not due to demand for its products, which remains strong. The good news is that over the age management has been successful in surpassing its original production goals. We believe that could occur next year and therefore see to it the stock as especially attractive. Our 12-month target price of $62 suggests potential capital appreciation of 30 percent.

·Recently inform third quarter earnings were substantially above some(prenominal) Street and our expectations. HDI chance oned market share in all of its markets. direct leverage and a richer mix boosted margins, and its financial subsidiary had other solid quarter. This years third quarter earnings were favorably touched by foreign exchange and were less affected by model changeover costs/disruptions than last year.

·Heavyweight motorcycle registrations in the U.S. grew 12 percent in 2002 despite cushiony economic conditions. HDIs registrations grew 18 percent in 2002.



Through the eldest eight months of 2003, industry registrations rose 4.5 percent while for the basic months HDIs registrations grew 12.9 percent. Industry growth in the mid single-digit area is visualize for 2003 with growth accelerating in 2004 to the high single-digit range. HDI is projected to continue to gain share.

·HDI is the industry leader with strong brand and product recognition. worry is focused on growing new products or amend existing ones, providing marketing/financial support to its dealers/customers/clubs, and in developing/supporting...

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