Stock Analysis

Did Proposed Federal Funding Cuts Just Shift Harley-Davidson's (HOG) Technology Investment Narrative?

  • In recent days, the U.S. Department of Energy announced proposed federal funding cuts that could impact major automakers, including Harley-Davidson, potentially affecting grants previously awarded for technology and electric vehicle initiatives.
  • This development has raised concerns about future government support for Harley-Davidson's innovation efforts and investments in emerging segments like electric motorcycles.
  • We'll now explore how the threat of reduced federal support for technology investments could influence Harley-Davidson's investment outlook.

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Harley-Davidson Investment Narrative Recap

To be a Harley-Davidson shareholder today, you need to believe the company can reinvigorate its brand, overcome weak consumer demand, and transition successfully into new segments like electric motorcycles, all while facing macroeconomic uncertainty and elevated rates. The recent announcement of possible federal funding cuts for electric vehicle initiatives adds another layer of uncertainty to Harley-Davidson’s innovation push but is not likely to materially shift the main short-term catalyst, brand and product revitalization, nor the key risk of declining motorcycle unit sales.

Of the latest company news, the launch of the "Get Lost" apparel collection with Realtree stands out. While not directly related to electric vehicle funding, this collaboration highlights Harley-Davidson's push to broaden its appeal and reach new customers, a critical catalyst as shifting consumer demand remains front and center for the near future.

But, while expanding lifestyle offerings can help, investors should be aware that persistent weakness in global motorcycle sales remains a challenge and...

Read the full narrative on Harley-Davidson (it's free!)

Harley-Davidson's outlook anticipates $3.9 billion in revenue and $390.5 million in earnings by 2028. This relies on a 4.4% annual revenue decline and a $147.7 million earnings increase from the current earnings of $242.8 million.

Uncover how Harley-Davidson's forecasts yield a $29.33 fair value, a 9% upside to its current price.

Exploring Other Perspectives

HOG Community Fair Values as at Oct 2025
HOG Community Fair Values as at Oct 2025

Simply Wall St Community members have placed fair value estimates for Harley-Davidson between US$19 and US$47.94, based on four diverse forecasts. With such wide-ranging views and unit sales still under pressure, your own expectations for future growth and risk are more important than ever.

Explore 4 other fair value estimates on Harley-Davidson - why the stock might be worth as much as 78% more than the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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