Finance
BofA revises Harley-Davidson stock price after latest announcement
Harley-Davidson’s new CEO wants to transform how people think about the iconic motorcycle brand, so the company is trying something different.
This week, Harley announced a new strategy that focuses on lower-priced bikes, rather than relying on older, more affluent customers to buy its higher-margin touring models.
“Back to the Bricks builds on our core strengths and competitive advantages, harnessing the passion of our riders to deliver profitable growth for the Company and both our dealers and shareholders,” Harley CEO Artie Starrs said this week. “As we drive towards this new phase of growth, we remain committed to the craftsmanship and dedication that define our brand.”
Entry-level Harley-Davidsons cost about $13,000, while the higher-end Adventure Touring models average about $23,250, and the Premium Range &CVO models cost about $38,500, according to Reuters.
Harley’s new strategy targets a core profit of over $350 million from its motorcycle business by 2027 and over $150 million in cost reductions.
To kick off the new strategy, Harley is introducing Sprint, a new entry-level model powered by a smaller 440cc engine, later in the year.
What is Harley-Davidson’s “Back to the Bricks” strategy?
Harley’s new strategy relies on more than just pushing buyers toward cheaper vehicles to increase volume. The 123-year-old company has a set of five pillars on which it is building its future.
Harley-Davidson “Back to the Bricks” 5-point plan
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Deep appreciation of Harley-Davidson’s competitive advantages and legacy: The Company’s iconic brand, diversified and powerful revenue channels, and best-in-class dealer network provide a powerful foundation for growth.
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Renewed commitment to exclusive dealer network to drive enterprise profitability: Harley-Davidson’s dealers are a competitive advantage. The Company is planning actions to enable dealers to double profitability in 2026 and then double it again by 2029.
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Immediate actions to recapture share in areas where Harley-Davidson has right to win: Harley-Davidson has strong legacy equity in existing markets including new motorcycles, used motorcycles, Parts & Accessories, and Apparel & Licensing. The Company’s new strategy is focused on positioning the Company to regain share and drive meaningful volume growth in categories where it benefits from credibility, scale, and deep rider connection.
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Strong financial position with a path to stronger free cash flow and EBITDA margin: Cost and restructuring actions already underway support a path to stronger free cash flow and EBITDA margin over time.
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Bolstered management team with balance of fresh perspectives and institutional knowledge: Harley-Davidson has made a number of leadership appointments that support the Company as it leverages its innate strengths.
This week, analysts at Bank of America reiterated their buy rating on the stock despite disappointing first-quarter earnings.
Why does Bank of America have a “buy” rating on Harley Davidson HOG?
This week, Harley-Davidson reported a 12% decline in consolidated revenue to $1.17 billion, while its net income dropped 81% year over year to $25 million, or 22 cents per share. Wall Street was expecting earnings of 25 cents per share, while the operating income of $18.9 million also fell short of the $22 million expectations.
Still, analysts at Bank of America reiterated their buy rating on the stock while setting a $32 price target that at the time suggested a 34% upside from Harley’s trading price. However, Harley stock has been on a run this week, closing Friday’s session up 7.5% to $25.42.
BofA says its bullish outlook is based on its view of “accelerating brand momentum and new management strategy driving increases in profitability.”
“Management has been pivoting to better align wholesale with retail, particularly in 4Q. We forecast 4Q26 shipments down 35% sequentially but up 66% y/y, with full‑year wholesale near the high end of management’s 130-135k outlook,” BofA analysts said in a note viewed by TheStreet.
The firm now expects HOG to report 2026 EPS of 60 cents per share and 2027 EPS of $2.20 per share vs consensus estimates of 55 cents and $2.20 per share, respectively. The firm also notes that its $32 price objective is now based on 14-15x its 2027 EPS forecast, which is slightly above the company’s long-term historical average of 13x.
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This story was originally published by TheStreet on May 9, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.