Harley shares roar yet again
This time, the cycle maker's shares jump on an estimate boost. But takeover talk still fuels the stock.
This is a loud, lovely time to be a shareholder of Harley-Davidson (HOG).
The shares jumped 10.5% to $31.37 today after RBC Capital Markets analyst Edward Arnold raised his target for the stock to $36 from $32.
The stock was the second-best performer in the Standard & Poor's 500 Index ($INX). Volume topped 10.4 million shares, nearly three times the average for the stock over the last three weeks.
Maybe the talk of a leveraged buyout bid from Kohlberg Kravis & Roberts will materialize. Reuters says at least one analyst believes an offers is unlikely.
In the meantime, Arnold likes Harley.
Retails sales generally are firming up, he wrote clients today. Auto sales have improved, and pricing for motorcycles has firmed.
As a result, he thinks Harley-Davidson's first-quarter earnings, due April 20, could reverse a recent trend of earnings disappointments.
So, do you buy Harley? Maybe. But the stock is now pricey. It's selling at 17 times forward earnings and 105 times trailing earnings.
Plus, as Michael Brush noted recently, it's got problems. The economy has exacted a big toll.
Plus, the Corporate Library thinks its governance is lacking. It staggers directors' terms, and many board members have direct relationships with the company.
The result may be that the company's management isn't pushed hard enough.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
- Dec gold rose for the first time in six sessions as it gained support from Janet Yellen's speech at the Jackson Hole Symposium. Ms. Yellen said the FOMC sees significant underutilization of labor resources and that the labor market has not fully recovered despite recent gains. The yellow metal advanced to a session high of $1282.80 per ounce and settled with a 0.4% gain at $1280.30 per ounce, booking a 2.0% loss for the week.
- Sep silver touched a session high ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
VIDEO ON MSN MONEY
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'