Morningstar Rating

Stock Research and Analysis

by Jaime M. Katz, CFA

Bulls Say

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 continue to payoff 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 almost $5 billion of cumulative free cash flow over the next five years.
Harley is the market share leader in the custom and touring segments, two of the most profitable motorcycle categories. Read more 

Bears Say

Harley-Davidson's core demographic is aging, which is likely to reduce the demand for Harley's products. To mitigate the lost revenue from this consumer outreach to new segments must be successful.
New compelling competitors, like Polaris' Indian brand, could threaten Harley's leadership position, offering products with new innovation at similar prices, 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 

Management

The senior management team of Harley underwent a facelift in 2009 as Keith Wandell took the reins as CEO and John Olin, Harley's previous controller, was promoted to CFO. Wandell was previously the COO of Johnson Controls and comes to Harley with considerable   Read more 

Profile

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 

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