William Blair analyst Sharon Zackfia reiterated a Market Perform rating on Harley-Davidson after the company reported fourth quarter results. Zackfia noted that she is lowering her estimates for the company after its "weaker-than-expected" 2020 margin guidance, saying the outlook suggests "little top-line momentum." The analyst added that her rating is pending a consistent return to domestic retail sales gains, especially given a "challenging" domestic motorcycle backdrop.
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.