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.
March new home sales hit an annualized rate of 384,000, which was down from the revised February rate of 449,000 (from 440,000), and worse than the rate of 455,000 that had been broadly expected by the Briefing.com consensus. Nasdaq -26.18 at 4135.28... NYSE Adv/Dec 1325/1443... Nasdaq Adv/Dec 683/1597.
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'