Harley-Davidson downgraded to Neutral from Outperform at Baird

Baird downgraded Harley-Davidson to Neutral from Outperform with a price target of $40, down from $44, after contacting the company’s dealers for an update on Q3 trends. Dealers reported weak retail, excess inventory, and caustic sentiment – all of which suggest risk to Harley-Davidson’s guidance, the analyst tells investors in a research note. The firm says the company “was in the news for all the wrong reasons this summer, fueling more frustration among stakeholders.” Baird still sees value in the Harley-Davidson brand, but says “sour feedback from riders, dealers, and shareholders has mixed a potent cocktail this season.”