World’s largest automakers

In 2017, Toyota Motor Corporation’s (TM) global sales volume ranked third in the world after the Renault–Nissan–Mitsubishi 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 (IYK) General Motors (GM) and Ford (F). Let’s take a quick look at what analysts are recommending for Toyota in August.

Analysts’ Consensus Target for Toyota Stock Fell in August

Ratings on Toyota stock

According to the latest data by Reuters, about 59.0% of 22 analysts covering Toyota recommended a “buy.” The remaining 41.0% of these analysts were cautious and suggested a “hold” for the stock. There were no “sell” ratings.

About four months ago, 45.0% of these analysts recommended a “buy” for Toyota stock. On August 28, analysts’ 12-month consensus target price for Toyota’s ADR (American depositary receipt) was $138.05. This target price reflected 9.5% upside potential from its market price of $126.07 on the NYSE. Analysts’ consensus target price for TM in August has dropped to $138.05 from $143.18 about a month ago.

Recent updates

In July, Toyota’s US sales fell 6.0% YoY (year-over-year). Toyota’s July volume of 208,770 units in the US market was higher than Ford’s 194,026 units. On a year-to-date basis, Toyota’s US sales volume has risen 1.5% YoY, which could have supported analysts’ positive views of the company.

In the first week of August, Toyota announced its results for the quarter ended June 30. The company’s operating margin for the quarter rose to 9.3% from 8.1% in the corresponding quarter in 2017. A positive trend in Toyota’s profit margins could keep investors’ optimism alive going forward.

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

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