Harley-Davidson price target lowered to $37 from $40 at Citi

Citi analyst James Hardiman lowered the firm’s price target on Harley-Davidson to $37 from $40 and keeps a Neutral rating on the shares. Based on recent channel checks, Harley-Davidson’s retail trends continue to be “fairly lackluster,” even as there has been a “bit of a spark” from new CVO models, the analyst tells investors in a research note. The firm says that while “the pieces are coming together for an interesting thesis,” it is taking a wait-and-see-approach on the shares. Citi believes the company’s domestic retail sales were down mid-teens year-over-year in July and August. Dealer contacts spoke about how Harley has gotten much more aggressive lately with promotions than it has historically, adds Citi.