Toyota’s Price Target Has Risen in the Last Three Months

Toyota Motor Company

In 2017, Toyota Motor Corporation’s (TM) global sales volume ranked third in the world after the Renault–Nissan–Mitsubishi Alliance and Volkswagen (VLKAY). In 2008, Toyota became the world’s largest auto company by volume for the first time. Toyota topped the global auto industry despite being founded much later than legacy US auto giants (IYK) General Motors (GM) and Ford (F), which were founded in 1908 and 1903, respectively.

Let’s take a quick look what analysts are recommending for Toyota in July.

Toyota’s Price Target Has Risen in the Last Three Months

Analysts’ ratings on Toyota stock

According to Reuters, about 59.0% of the 22 analysts covering Toyota recommended a “buy.” Another 36.0% of these analysts recommended a “hold,” and the remaining 5.0% of these analysts gave a “sell” rating.

About three months ago, only 45.0% of these analysts recommended a “buy” for TM stock. On July 11, analysts’ 12-month consensus target price for Toyota’s ADR (American depositary receipt) was $143.18. This target price reflected an 11.8% upside potential from its NYSE market price of $128.06.

Analysts’ consensus target price for Toyota stock in July has risen to $143.18 from $135.85 about four months ago.

Recent updates

In June, Toyota’s US sales rose 3.6% YoY (year-over-year). On a year-to-date basis, its US sales volume has risen 3.0% YoY, which could be one of the reasons for analysts’ positive views of the company.

In May, Toyota announced its fiscal 2018 results for the period from April 1, 2017, to March 31. The company’s adjusted earnings for fiscal 2018 rose 39.0% YoY to 842.00 Japanese yen per share, or ~$7.67. In fiscal 2018, TM’s net profit margin increased to 8.5% from 6.6% in fiscal 2017 due to favorable currency movements and its cost-reduction efforts.

Continue to the next part to see how analysts are rating Toyota’s home market peer—Honda Motor Company (HMC).