BancBoston Robertson Stephens Initiates Coverage of Harley-Davidson
16 November 1998BancBoston 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 customers. 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.