Goldman Sachs cuts Harley Davidson Motorcycle (HOG) stock to conviction sell vs. neutral. Unprecedented credit issues and lack of demand are dual impacts in Harley Davidson Motorcycles global luxury motorcycle market place. To top it off, if credit cuts with higher interest rates and demand isn’t bad enough, two key management departures in one month reinforces the stock markets views.
Harley-Davidson (NYSE: HOG) went from Neutral to Sell as Goldman Sachs downgrades adds them to their Conviction Sell List which sent shares down as much as 13%. Goldman Sachs also slashed Harley Davidson Motorcycles six-month stock price target from $30.00 to $11.00 as it expects an additional downside to the in global luxury-motorcycle demand and much tighter credit.
Harley-Davidson, Inc., manufactures motorcycles, motorcycle parts, accessories, and has credit related services in the United States and internationally. The Ultra Classic and other heavyweight cruiser motorcycles are likely to be the hardest hit due to the financial downturn which has really affected the higher income folks that make up a very large sector Harley Davidson Motorcycle buyers.
Several key factors were evaluated for the new forecast that predicts a 30 percent drop in Harley Davidson Motorcycle sales in 2009. If this holds true, it would be the largest decline in Harley Davidson registrations since the early 1970s and 2009 will be a year of “significant change” for Harley Davidson Motorcycles.
Well…us in the business must wonder what else can happen to the motorcycle and custom motorcycles industry. If you are insider to the motorcycle industry, it would be very interesting to hear your comments as to Harley Davidson Motorcycles demand, or shall we say lack of demand, and that of the motorcycle marketplace to include custom motorcycles, custom choppers and custom bobber motorcycles.
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