11:42 AM EDT, 07/23/2024 (MT Newswires) -- Harley-Davidson's ( HOG ) potential June gains do not necessarily indicate good demand as the company faced significant production cuts in Q2 2022 and 2023, leading to fluctuating retail sales and unusual year-over-year comparisons, UBS Securities said in a note Tuesday.

"A June comparison against two years of production shutdowns is a short-lived comparison, and we believe that even Harley-Davidson's ( HOG ) management would agree," UBS said.

The firm said the company's Q2 retail was disappointing, particularly after Q1 promotions on non-current bikes ended, and new Touring models did not drive demand.

Shareholders may be less tolerant of Harley-Davidson's ( HOG ) projected $110 million loss from the electric bike segment, and eliminating these losses by shutting down the business could provide a one-time earnings per share benefit of roughly 16%, UBS added.

The firm reiterated its neutral rating on Harley-Davidson's ( HOG ) stock and kept the price target at $39.

The company's shares were down by nearly 3% in recent trading.

Price: 34.30, Change: -1.03, Percent Change: -2.92