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While iconic U.S. motorcycle brand Harley-Davidson (NYSE:HOG) continues to face increased competition from Polaris Industries' (NYSE:pII) revitalized Indian brand as well as other rivals, a new report from RBC Capital Markets suggests Harley might recapture some market share next year.

In a report released Monday morning, RBC analyst Joseph Spak upgraded Harley to outperform from sector perform. He said 2015 share gains for Harley "are likely" considering the company will once again have a full suite of products.

That suite includes the return of Harley's popular Road Glide touring bike, which was dropped from the 2014 lineup so the company could freshen up the model.

"Thinking about 2015, not only are two Road Glide models back in the portfolio, but also five other new models," Spak wrote. "Checks indicate initial reception to the lineup appears very positive."

He says Harley's U.S. share loss during this year's second quarter — its share fell 2.6 percentage points year-over-year — "caused concern about increased competition from the likes of Indian and others."

But while Spak expects Harley's market share will decline over time as it faces more competition from more companies, he says reaction to recent share losses "appears overdone to us."

Polaris, best known for its lineup of snowmobiles and all-terrain vehicles, bought the 113-year-old Indian biker brand in 2011. Since then, the company has re-launched new and improved Indian models, starting with three last year.

Among lower-priced models, the Indian Scout competes against Harley's entry-level Sportster. On the higher priced end, the Indian Roadmaster is comparable to Harley's Road Glide.

Harley and Polaris are both part of IBD's Leisure-Products group, which ranks No. 151 of 197 industries tracked by IBD. The top-rated stock in the group is fitness equipment maker Nautilus (NYSE:NLS), which has an IBD Composite Rating of 96. Polaris, a recent member of the IBD 50, has a Composite Rating of 91. It has produced 20%-or-better sales and earnings growth in three of the last four quarters. Although Harley has a Composite Rating of only 56, its EPS Rating is a strong 95. Its stock price was up about 1% to 59.93 in morning trading on the stock market.


Read More At Investor's Business Daily: Can Harley-Davidson Hog More Share From Polaris, Other Rivals? HOG PII NLS - Investors.com
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I'm not sure where to start...as a bit of background....prior to retirement, I worked at one of the largest Financial Institutions in the country. I headed a capital management unit that was responsible for multi-billion dollars of "at risk" capital. Our company worked with HD not long after their IPO to establish their first charge card, we "made market" in HDI (now HOG) stock and we also provided other services to The Company. In other words, I got to know HD well, though diminishing in my portfolio, I still own stock in HD. Now about the RBC Capital Markets comments...they may be right or not in their prediction, but I suggest you take it all with a grain of salt. Interestingly, my brokerage's analyst's group gave the opposite prediction for HOG stock.

In my experience, market analysts generally do NOT have a great track record (Warren Buffet notwithstanding). If you dig into HD products, pricing and dealer traffic where actual sales are (or are NOT) taking place, I believe you will see a different picture and probably one that supports another conclusion with respect to HD's performance. I do NOT intend to repeat much of what I said on this subject in another thread, but Harley is falling behind in product innovation, quality/durability of their large-block powertrains and competitive pricing on all their products. Dealer relationships with The Motor Company are strained with respect to store design, stocking levels, store locations, and more. Senior management (i.e. CEO) at HD is just not a "biker" or enthusiast, and I see the consequences of that situation playing out in future product and eventually, shareholder value. There is a lot more that can be said on this topic, but I do NOT want to turn it into a "rant". Others will have their own opinion...
 

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In just short of 2 years. My Polaris [PII] stock is up %79 HOG is down %2.41 right now for the day. near the low for the year been very flat. I own 25 different stocks. Polaris my best performer HOG I think doesn't look too good. Made a killing on Disney and Dominos Pizza go figure. Comforting to know some pencil pushing geek on wall street. Has motorcycles sales all figured out.
 
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