HARLEY-DAVIDSON shares skidded 12% Monday as analysts in America grew more skittish about motorcycle purchases in a downbeat economy.
Goldman Sachs chopped Harley's shares to sell, slashing its price target to $11 (£9), and cutting its 2009 profit outlook in half. Analysts used to have a price target of $30 (£27).
Goldman analyst Patrick Archambault said he expects Harley's retail bike sales to fall by 30% this year, making it the worst year for new registrations since 1982.
Chief Executive Officer James Ziemer last month said that he plans to retire this year, capping a 40-year run with the company.
On Thursday, Sy Naqvi stepped down as interim president of the motorcycle maker's finance unit.
Analysts had been flagging Harley-Davidson Financial Services as an area of concern. The unit is expected to make much less money, take on more delinquent loans, and be forced to find new sources of funding as the secondary market to sell its loans is dried up.
Sounds like things are getting very dire in Harley-Davidson's biggest market.
