More trouble for Harley-Davidson

Reports Business Week:

Shares of Harley-Davidson Inc. declined Thursday after an analyst recommended investors sell the motorcycle maker's stock, saying bike sales fell as much as 40 percent in October and November and demand remains uncertain.

 

Shares declined $1.38, or 5.1 percent, to $25.51 in midday trading.

Goldman Sachs analyst Patrick Archambault on Thursday added Harley-Davidson to the bank's "Conviction Sell" list with a six-month price target of $23. That implies the analyst expects shares to drop almost 15 percent from its closing price Wednesday of $26.89.

He previously rated the stock "Neutral."

Archambault said checks with dealerships indicate retail bike sales declined between 35 percent and 40 percent in October and November due to tighter lending standards at the company's lending arm and a recall of 110,000 touring and custom bikes.