RumbleON stock drops following Harley-Davidson production halt, but analyst says it’s okay to buy

Shares of RumbleON Inc. RMBL,
-4.11%
fell 6.3% to a 22-month low, on the heels of Harley-Davidson Inc.’s HOG,
-9.29%
announces that it was suspending all assembly and shipping for two weeks due to a regulatory compliance issue. Harley-Davidson stock fell 8.9%. RumbleON, which is a motor vehicle dealership and e-commerce platform, said in its latest annual report that Harley-Davidson was its third largest customer in 2021, accounting for 16.1% of total new vehicle sales. B. Riley analyst Eric Wold reiterated the buy rating he’s had on RumbleON for at least the past three years and maintained his stock price target at $53. He thinks the Harley-Davidson news could end up being a net positive for RumbleON, as Harley’s share of the company’s revenue is down, from a 12-month rate of around 24% at the time. end of June. Basically, Wold doesn’t think a two-week production suspension would represent anything different from what RumbleON has already faced. And the lack of new Harleys could push RumbleON customers towards its “large inventory” of used Harleys. RumblON shares have fallen 64.3% since the start of the year, while Harley shares have lost 13.6% and the S&P 500 SPX,
-0.58%
lost 17.9%.

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