Harley-Davidson unveils a growth plan targeting $350 million in core profit by 2027 with lower-priced bikes and cost cuts.
Bank of America revised its price target for Harley-Davidson (HOG) after the company announced a new strategy focusing on lower-priced motorcycles. The plan, dubbed “Back to the Bricks,” aims to broaden Harley’s customer base beyond its traditional affluent buyers by introducing entry-level models starting at $13,000, compared to $23,250 for mid-range and $38,500 for premium models.
Harley-Davidson projects over $350 million in core profit from its motorcycle segment by 2027, alongside $150 million in cost reductions. The company also plans to launch the Sprint, a 440cc entry-level model, later this year as part of its five-pillar growth strategy.
The shift follows stagnant sales in recent years, with Harley relying heavily on high-margin touring models. Analysts note the move could attract younger riders but may pressure near-term margins.