Wall Street Analyst Cites Economic Factors, Election Impact on Sales
- Harley-Davidson stock falls after Wall Street analyst downgrades it to ‘Hold’ from ‘Buy’
- Analyst Craig Kennison cites weak retail, excess inventory, and negative sentiment as concerns
- Harley-Davidson expects motorcycle revenue to be down 7% YoY in 2024
- Operating profit estimates differ: Harley-Davidson at $400M, Wall Street at $500M
- Factors affecting sales include economy, election, and online clothing sales
- High interest rates impacting motorcycle purchases
- Harley-Davidson stock down 3.7% in premarket trading at $36.60
Harley-Davidson stock fell in early trading after Baird analyst Craig Kennison downgraded the company to ‘Hold’ from ‘Buy’, citing weak retail performance, excess inventory, and negative sentiment as reasons for his decision. The motorcycle manufacturer expects a 7% year-over-year decline in revenue for 2024, with operating profit at around $400 million. Wall Street estimates are closer to $500 million. Factors affecting sales include the economy, the election, and increased online clothing sales. High interest rates also hinder motorcycle purchases. Harley-Davidson stock dropped 3.7% in premarket trading.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Harley-Davidson’s current financial situation based on the analysis of a Wall Street analyst. It includes relevant details about the company’s performance, market expectations, and factors affecting sales. The article does not include any irrelevant or sensational information, nor does it present personal opinions as facts.
Noise Level: 6
Noise Justification: The article provides some relevant information about Harley-Davidson’s financial performance and market sentiment but focuses heavily on the downgrade of the stock by a single analyst, which may not be significant enough to warrant such emphasis.
Public Companies: Harley-Davidson (HOG)
Key People: Craig Kennison (Analyst at Baird)
Financial Relevance: Yes
Financial Markets Impacted: Harley-Davidson stock
Financial Rating Justification: The article discusses the downgrade of Harley-Davidson stock by an analyst and its impact on the company’s financial performance, as well as the effect on the stock price in trading. It also mentions the comparison with Wall Street estimates for operating profit and the overall sentiment in the market.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article, and it mainly discusses Harley-Davidson’s stock performance and a downgrade by an analyst.
Move Size: The market move size mentioned in this article is a 3.7% decrease in Harley-Davidson stock during premarket trading.
Sector: All
Direction: Down
Magnitude: Medium
Affected Instruments: Stocks
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