Baird analyst Craig Kennison lowered his U.S. estimates on Harley-Davidson following his dealer survey which showed declines in U.S. retail sales and dealer sentiment. He said future growth will require the company to build a global base of new riders and the company has begun to unveil next-gen products which are unlikely to move the needle until 2021. Kennison maintained his Neutral rating and lowered his price target to $42 from $45 on Harley-Davidson shares.
Says no sustained down time in factories to date. Expects FY21 tariff exposure of $80M vs. prior view of $135M. Says seeing increased consumer appetite for products, brand. Says seeing "outstanding sell through" from Pan America motorcycle. Says inventory levels lower than originally planned due to strong demand. Says chip shortages constraining motorcycle inventory levels. Says seeing input costs increases in steel, aluminum.