BancBoston Robertson Stephens Reiterates Buy Rating on HDI
10 May 1999
BancBoston Robertson Stephens Reiterates Buy Rating on HDISAN 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. BancBoston Robertson Stephens is a leading international investment banking firm focused on growth companies. The firm's 55 equity and high yield research analysts cover more than 600 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, expressed 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.