Goldman Sachs Upgrades HOG To Neutral, Raises PT to $44

Goldman Sachs is upgrading Harley-Davidson Inc. HOG to Neutral from its previous rating of Sell and is raising its price target from $32 to $44 as demand stabilizes. According to Goldman Sachs, “We are upgrading shares of HOG to Neutral from Sell, as we think we could be nearing an inflection point on retail sales as our channel checks point to a mid-single-digit yoy increase in 1Q11, which would be the first increase in 17 quarters. Channel checks also point to stronger used bike prices, suggesting overhang from high levels of used inventory may be abating. Our Sell rating was underpinned by expectation of weak earnings performance on the back of poor end demand outlook, but this was more than offset by a stronger pricing environment and better cost control by the new management.” HOG closed yesterday at $40.47.