In 2017, Toyota Motor Corporation’s (TM) global sales volume ranked third in the world after the Renault–Nissan alliance and Volkswagen (VLKAY). Toyota became the world’s largest automaker by volume in 2008 for the first time. Toyota jumped to the world’s top position in 2008 despite being founded much later than legacy US auto giants (VCR) General Motors (GM) and Ford (F). Now, let’s take a quick look at what analysts are recommending for Toyota in March 2018.
Analysts’ recommendations on Toyota
According to the latest data by Thomson Reuters, about 46.0% of 22 analysts covering Toyota recommended a “buy.” Another 46.0% of these analysts were cautious and suggested a “hold” for the stock, and the remaining 8.0% of these analysts gave a “sell” recommendation.
Analysts’ 12-month consensus target price for Toyota’s ADR (American Depository Receipt) was $138.29. This target price reflected an 8.0% upside potential from its market price of $128.04 on the NYSE.
In contrast to its US competitors GM and Ford, Toyota’s consensus target didn’t show much upside potential. However, analysts’ consensus targets for GM and Ford showed upside potential of 37.5% and 14.4%, respectively. The analysts’ consensus target price for Toyota in March has risen to $138.29 from $135.85 about a month ago.
Raised fiscal 2018 guidance
In the first two months of 2018, Toyota’s US sales volume rose 10.0% year-over-year to 349,251 vehicle units. In February 2018, Toyota released its earnings results for fiscal 3Q18 ended December 31, 2017.
The company’s net profits for the quarter spiked 93.6% year-over-year. TM’s fiscal 3Q18 revenues rose ~7.4%. Its net profit margin rose to 12.4% compared to 6.9% in fiscal 3Q17. Toyota’s management also raised its fiscal 2018 guidance during its fiscal 3Q18 earnings event.
Continue to the next part where we’ll see what analysts are recommending for Toyota’s home market peer, Honda (HMC).