Bernstein analyst David Beckel, noting that Harley-Davidson's retail sales came in significantly below expectations, says he is more convinced that the company is being hurt by young peoples' lack of enthusiasm about motorcycles. He adds that many of the young people who are enthusiastic cannot afford new bikes. The analyst says that the company's fundamentals can deteriorate further in the near-term, but adds that the stock's "risk/reward looks compelling if one is reasonably confident" that its U.S. sales "will stabilize" soon. He keeps a Market Perform rating.

Morgan Stanley assumed coverage of Harley-Davidson with an Overweight rating and $50 price target. Harley-Davidson is an iconic brand with leading market share in the U.S. motorcycle industry and "a fiercely loyal customer base," says the analyst, who believes a refocused strategy under new leadership, along with strong capital allocation discipline, will lead to upside to consensus earnings estimates.