HOG: H Partners Challenges Harley-Davidson Leadership Amid Decline

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Apr 16, 2025
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Key Takeaways:

  • H Partners Management advocates for change at Harley-Davidson due to leadership concerns.
  • Analysts predict a significant potential upside for Harley-Davidson stock.
  • GuruFocus estimates suggest the stock is currently undervalued.

H Partners Management has publicly called upon Harley-Davidson (HOG, Financial) shareholders to vote against CEO Jochen Zeitz and major board members in the upcoming annual meeting. The investment firm, which holds a significant 9.1% stake in Harley-Davidson, accuses the leadership of poor execution and cultural misalignment. The issue underlines a broader concern with an absentee CEO, contributing to a notable 28% decrease in stock value this year. As a result, shares have dipped slightly by 0.2% in premarket trading.

Wall Street Analyst Projections

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Based on insights from eight financial analysts, Harley-Davidson Inc (HOG, Financial) has an average one-year price target of $30.25, with forecasts ranging between $26.00 and $35.00. This average suggests a potential upside of 39.98% compared to the current trading price of $21.61. For a comprehensive overview of these estimates, visit the Harley-Davidson Inc (HOG) Forecast page.

In terms of overall sentiment, Harley-Davidson currently holds an "Outperform" status based on an average brokerage recommendation of 2.5 from 15 firms. This rating falls on a scale from 1 to 5, where 1 represents a Strong Buy and 5 indicates a Sell recommendation.

GuruFocus Valuation Insights

The GF Value estimate for Harley-Davidson Inc (HOG, Financial) over the next year is pegged at $28.94. This valuation suggests a potential upside of 33.92% from the present stock price of $21.61. The GF Value is a proprietary metric by GuruFocus, calculated using historical trading multiples, past growth, and future business performance projections. Investors can access a deeper analysis on the Harley-Davidson Inc (HOG) Summary page.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.