BancBoston Robertson Stephens Reiterates Buy Rating on HDI
10 May 1999
BancBoston Robertson Stephens Reiterates Buy Rating on HDI SAN FRANCISCO, May 10 -- The following is being issued by
BancBoston Robertson Stephens, a member of the National Association of
Securities Dealers, CRD number 41271:
BancBoston Robertson Stephens senior consumer products analyst Cynthia
Hope Hatstadt today reiterated her Buy rating on Harley Davidson, Inc.
. Harley Davidson, headquartered in Milwaukee, Wisc., is a
manufacturer of heavyweight motorcycles, commanding roughly 50 percent of the
North American market and 25 percent of the worldwide market.
"We believe that the current sell-off of the stock is unwarranted and have
a high degree of confidence that the company is on-track to meet our
second-quarter earnings per share estimate of $0.44, representing 23 percent
year-to-year growth," said Hatstadt. "Our confidence is based on the following
factors:
1) a strong start to the retail selling season,
2) first quarter industry registration data is on fire,
3) introduction of year 2000 models in July should continue to spur
demand, and
4) upside is likely driving the growth rate up to 27 percent for 1999.
"At $57.19 a share, Harley-Davidson is trading at 27.2 times our fiscal
2000 earnings per share estimate of $2.10, basically in line with the market
multiple and representing a 14 percent discount to its peer group," said
Hatstadt. "Thus, we recommend purchase of the shares for growth-oriented
investors."
Clients interested in receiving more information should contact their
salesperson at 415-781-9700.
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