Harley-Davidson's brand is more than 100 years old and resonates globally with a wide consumer base, particularly its core market (men over 35). Outreach initiatives should pay off longer term as the company identifies with a wider target market.
The company has historically generated strong free cash flow, and we expect it to continue to do so, producing more than $4.5 billion of cumulative free cash flow over the next five years.
Harley remains a market share leader in the custom and touring segments domestically, two of the most profitable motorcycle categories. Read more
Harley's core demographic is aging, which is likely to reduce the demand for the firm's products. To mitigate the lost revenue from this consumer, outreach to new segments must continue to be successful.
Compelling rival brands, like Polaris' Indian, could threaten Harley's leadership position, offering products with new innovation at similar prices and stealing share.
HDFS is highly dependent on credit availability in the retail market. If credit standards tighten, the cost of financing could increase, which could decrease the number of loans to customers and depress retail sales. Read more
Matt Levatich is set to take the helm at Harley-Davidson in May. Levatich has been with Harley for more than 20 years in multiple roles (currently president and COO), and we think he has a good handle on issues and resolutions across both the supply Read more
Harley-Davidson is the world's leading manufacturer of heavyweight motorcycles, parts, and accessories. It sells custom, cruiser, and touring motorcycles and offers a complete Read more