Harley-Davidson's (HOG) near-term outlook seems achievable for 2027, with "cost saves and tariff reductions helping bridge to growth in 2026 and 2027," UBS said in a note Monday.
Harley-Davidson has "intentionally undershipped popular models," including the new Trike introduced in January, "letting demand build in the market and allowing [Harley-Davidson] to stage retail growth next year," UBS said.
UBS said it expects the company to "undership the Sportster as well relative to the demand they expect" and added the relaunched Sportster is also not included in Harley-Davidson's 2027 outlook.
Harley-Davidson plans to execute its $150 million cost-savings program, while tariff reductions could provide a further benefit in 2027, according to the note.
UBS raised its price target to $26 from $19 and maintained a neutral rating.
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