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Interwebbernet
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This article comes from AsphaltandRubber.com
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It’s been a rough outing in the stock market for Harley-Davidson recently as in the past 10 days the company has seen to substantial hits to its stock price. First the company was hit by the news that it would be recalling over 110,000 motorcycles for faulty fuel tank mounts. And now, the latest bad news comes in the form of a downgrade by financial powerhouse Goldman Sachs, which has downgraded their opinion of Harley-Davidson from “neutral” to “sell”. More after the jump.
Making the announcement even worse is the fact Goldman Sachs has placed Harley-Davidson on their infamous “conviction sell” list, which is a listing of stocks the*investment bank’s research team expects to lag compared to market estimates. As such Goldman Sachs expects to see the stock hit a ceiling of $23 per share, noting the continuing decline in sales, and now impending recall as its source of reasoning.
HOG stock has been doing well over the past months, which has some analysts pitting the Milwaukee company as having a ceiling of $30 per share. However, Goldman sachs is quick to point out that a considerable amount of that growth and investment is coming from investors who are shorting the stock, which is an anticipation of it actually dropping further over time, and not from investors who believe Harley-Davidson will be a strong long-term investment.
Source: Goldman Sachs
Visit Asphalt & Rubber for more articles like this one
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This article comes from AsphaltandRubber.com
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It’s been a rough outing in the stock market for Harley-Davidson recently as in the past 10 days the company has seen to substantial hits to its stock price. First the company was hit by the news that it would be recalling over 110,000 motorcycles for faulty fuel tank mounts. And now, the latest bad news comes in the form of a downgrade by financial powerhouse Goldman Sachs, which has downgraded their opinion of Harley-Davidson from “neutral” to “sell”. More after the jump.
Making the announcement even worse is the fact Goldman Sachs has placed Harley-Davidson on their infamous “conviction sell” list, which is a listing of stocks the*investment bank’s research team expects to lag compared to market estimates. As such Goldman Sachs expects to see the stock hit a ceiling of $23 per share, noting the continuing decline in sales, and now impending recall as its source of reasoning.
HOG stock has been doing well over the past months, which has some analysts pitting the Milwaukee company as having a ceiling of $30 per share. However, Goldman sachs is quick to point out that a considerable amount of that growth and investment is coming from investors who are shorting the stock, which is an anticipation of it actually dropping further over time, and not from investors who believe Harley-Davidson will be a strong long-term investment.
Source: Goldman Sachs
Visit Asphalt & Rubber for more articles like this one
