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BancBoston Robertson Stephens Initiates Coverage of Harley-Davidson

16 November 1998

BancBoston Robertson Stephens Initiates Coverage of Harley-Davidson, Inc. With a Buy Rating
    SAN FRANCISCO, Nov. 13 -- The following is being issued by
BancBoston Robertson Stephens, a member of the National Association of
Securities Dealers, CRD number 41271:
    BancBoston Robertson Stephens consumer products analyst Cynthia Hope
Hatstadt initiated coverage today of Harley-Davidson, Inc. with a
Buy rating and a 12-month price target of $50. Harley-Davidson, established in
1903 and located in Milwaukee, Wisconsin, is the only major American
manufacturer of heavyweight motorcycles with legendary brand status around the
world. Its motorcycles command roughly 50% of the North American market and
25% of the worldwide market.
    "For the first time in several years, management will be able to
strategically establish the company's output following years of manufacturing
constraints and growing consumer demand. Expanded capacity should drive
increased motorcycle production over the next few years to at least 12-14%
annually, thereby unlocking the cap on the market share gains," said Hatstadt.
    Hatstadt also cited increased cash flows which could be used for an
aggressive share repurchase or a meaningful acquisition.
    "We feel the downside is protected with limited risk. Consistent with
historic trends, consumer demand for new Harley-Davidson motorcycles exceeds
supply by an estimated 10-20%, which we believe should provide for ongoing
consistent and reliable earnings growth."
    BancBoston Robertson Stephens is a leading international investment
banking firm focused on emerging growth companies. The firm's 55 senior
research analysts cover over 575 companies.
    Additional information is available upon request. The information
contained herein is not a complete analysis of every material fact respecting
any company, industry or security. Although opinions and estimates expressed
herein reflect the current judgment of BancBoston Robertson Stephens, the
information upon which such opinions and estimates are based is not
necessarily updated on a regular basis; when it is, the date of the change in
estimate will be noted. In addition, opinions and estimates are subject to
change without notice. This Report contains forward-looking statements, which
involve risks and uncertainties. Actual results may differ significantly from
the results described in the forward-looking statements. Factors that might
cause such a difference include, but are not limited to, those discussed in
"Investment Risks."  BancBoston Robertson Stephens from time to time performs
corporate finance or other services for some companies described herein and
may occasionally possess material, nonpublic information regarding such
companies. This information is not used in the preparation of the opinions and
estimates herein. While the information contained in this Report and the
opinions contained herein are based on sources believed to be reliable,
BancBoston Robertson Stephens has not independently verified the facts,
assumptions and estimates contained in this Report. Accordingly, no
representation or warranty, express or implied, is made as to, and no reliance
should be placed on, the fairness, accuracy, completeness or correctness of
the information and opinions contained in this Report. BancBoston Robertson
Stephens, its managing directors, its affiliates, and/or its employees may
have an interest in the securities of the issue(s) described and may make
purchases or sales while this report is in circulation. BancBoston Robertson
Stephens International Ltd. is regulated by the Securities and Futures
Authority in the United Kingdom. This publication is not meant for private
    The securities discussed herein are not FDIC insured, are not deposits or
other obligations or guarantees of BankBoston N.A., and are subject to
investment risk, including possible loss of any principal amount invested.