Loop Capital has upgraded its rating on Harley-Davidson shares to "Buy," highlighting the stock's attractive value proposition amid a sustained increase in motorcycle market demand.

Analyst Brandon Rolle raised the rating from "Hold" to "Buy," setting a price target of $32. This target implies a potential upside of approximately 20% from the stock's closing price last Friday. Shares of Harley-Davidson have already climbed 33% year-to-date and gained around 3% in early trading on Monday.

In a research note issued Monday, Rolle stated, "Feedback from dealers regarding inventory management, new product launches, growth in parts and service revenue, and flexible financing options is overwhelmingly positive. This optimism forms the core basis for our bullish stance on the stock."