UPDATE: J.P. Morgan Raising Price Target On Harley-Davidson

J.P. Morgan Chase & Co. is out with a research report on Harley-Davidson (NYSE: HOG) after it reported earnings yesterday, and is raising its price target to $44 from $41, but is keeping its Neutral rating on shares.

In a note to clients, J.P. Morgan Chase & Co. writes, "We continue to have a positive bias towards HOG but maintain our Neutral rating based on valuation. Our Dec-2011 price target now stands at $44, up from $41 earlier, based on a 15x P/E applied to our revised 2012e EPS of $2.90. Following a solid 2Q beat and upward revisions to shipment (228-235K units vs. 215-228K units earlier) and gross margin (34-35% vs. 33.5-35%) guidance, we tweak our 2011e and 2012e to $2.45 and $2.90 (vs. $2.15 and $2.75 earlier), respectively."

Shares of HOG gained $3.70 yesterday to close at $45.11, a gain of 8.94%.