07:55 AM EDT, 04/25/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We increase our 12-month price target by $5 to $40, based on a '25 P/E of 8.6x, a steep but justified discount to HOG's 5-year mean forward P/E of 12.8x. We raise our EPS estimates to $4.35 from $4.05 for '24 and to $4.65 from $4.40 for '25. HOG posts Q1 EPS of $1.72 vs. $2.04 (-16%), well ahead of the $1.52 consensus. The beat was driven by a stronger-than-expected top line, as revenue fell 5% to $1.48B ($130M ahead of consensus) on a 7% drop in motorcycle shipments and gross margin contracted 450 bps to 31.2% (170 bps below consensus). HOG reiterated prior full year guidance. We increase our price target but maintain a Hold opinion. With growing pressure on consumer discretionary spending, we think HOG's unchanged guidance despite a significantly better-than-expected Q1 reflects caution as it pertains to its motorcycle sales and margins for the balance of the year. Increased share repurchases were a positive, as HOG bought back 2.5M shares for $98M in Q1, and it has the cash for additional buybacks ($1.46B).