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How Are Analysts Rating Toyota in February 2018?

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Nov. 20 2020, Updated 4:54 p.m. ET

Toyota Motor Company

In 2017, Toyota Motor Corporation’s (TM) global sales volumes were in the third position in the world after Renault–Nissan–Mitsubishi Alliance and Volkswagen (VLKAY).

Toyota became the world’s largest automaker by volume in 2008 for the first time. Interestingly, TM was able to jump to that position despite being founded later than other legacy US auto giants (FXD) such as General Motors (GM) and Ford Motor Company (F). Now let’s take a quick look what analysts are recommending for Toyota in February 2018.

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Analysts’ ratings on Toyota

According to the latest data by Thomson Reuters, ~42% of the 24 analysts covering Toyota have recommended “buys” on the stock. Another 46% of these analysts have been cautious and have suggested “holds” the stock, while the remaining 12% of analysts have given it “sell” ratings.

Analysts’ 12-month consensus target price for Toyota’s ADR (American depositary receipt) was $135.17. This target price didn’t reflect any upside potential because its market price on the NYSE was already higher at $135.85.

Unlike in the cases of its US peers GM and Ford, Toyota’s consensus target didn’t show much upside potential. Analysts’ consensus target price for TM in February has risen to $135.85 from $134.80 about a month ago.

Recent updates

On February 6, 2018, Toyota released its earnings results for its fiscal 3Q18, which ended in December 2017. The company’s net profits for the quarter jumped 93.6% year-over-year. Moreover, TM’s fiscal 3Q18 revenue for the quarter also rose over 7.4%, while its net profit margin rose to 12.4% compared to 6.9% in fiscal 3Q17.

Toyota’s management also reiterated its fiscal 2018 guidance during its fiscal 3Q18 earnings event.

Read on to the next article, where we’ll see what analysts are recommending for Toyota’s home-market peer Honda Motor Company (HMC).

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