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What Analysts Recommend for Toyota after Weak 2017 Results

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Analysts on Toyota

According to the latest data compiled by Thomson Reuters, out of the 24 analysts covering Toyota Motor Corporation (TM), 42% gave the stock a “buy” recommendation. 50% of analysts gave a “hold” recommendation on the company while the remaining 8% of analysts gave a “sell” recommendation.

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Upside potential

As of May 11, 2017, Toyota’s consensus 12-month target price was $116.15 on the NYSE, which reflects an upside potential of ~8.7% from its market price of $106.84.

In the last couple of months, a higher number of analysts have changed their recommendations on Toyota from “buy” to “hold.” The risk due to the appreciating Japanese yen could affect Toyota’s upcoming earnings, which could be the primary factors for analysts’ cautionary approach on the company.

In addition, softening US auto sales could hamper Toyota’s overseas revenues going forward. It’s important to pay attention to these analysts’ recommendations. If popular Wall Street analysts change their views on a stock, a significant short-term movement could occur.

Peer comparison

The analysts’ recommendations and 12-month return potentials for Toyota’s peers (FXD) are as follows:

  • General Motors (GM): 36% “buy” recommendations with ~16.7% upside potential
  • Ford Motor (F): 33% “buy” recommendations with ~17.2% upside potential
  • Fiat Chrysler Automobiles (FCAU): 36% “buy” recommendations with an impressive upside potential of about 32.8%

Continue to the next part of this series for a look at the key support and resistance levels in Toyota’s price chart based on technical analysis.

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