Citi cuts Harley-Davidson target, opens ‘downside catalyst watch’

Citi lowered the firm’s price target on Harley-Davidson to $41 from $52 and keeps a Neutral rating on the shares. The analyst also opened a 30-day "downside catalyst watch" on the shares. Citi’s recent analysis of both securitized receivable delinquencies and used motorcycle pricing point to fewer borrowers making monthly payments and lower recovery values once bikes are repossessed, the analyst tells investors in a research note. The firm says this is a "recipe for increasing credit loss metrics and eventually a higher loan loss reserve." It sees reduced guidance for Harley-Davidson’s finance arm.