Analysts’ ratings on Toyota
According to the latest data by Thomson Reuters, ~71% of the 21 analysts covering Toyota Motor (TM) have given it “buy” recommendations. The remaining 29% of analysts have been cautious, suggesting “holds” on the stock, while no analysts have given it “sells.”
In the last six months, a number of analysts have turned positive on the company. In September 2018, only ~55% of analysts had suggested “buys” on Toyota.
Over 24% upside potential
On March 28, analysts’ 12-month consensus target price for Toyota’s American depositary receipt was $148.28. This target price reflected a ~24.5% potential upside from its price of $119.07 on the NYSE.
Analysts’ consensus target price for Toyota stock in the last six months has risen to $148.28 from $143.66.
Toyota’s US sales
In February, Toyota’s total US sales fell 5.2% YoY (year-over-year) to 172,748 units. In January, the company also reported a 6.6% YoY fall in its US sales volumes. February was the fourth consecutive month during which Toyota reported a fall in its US sales after minor sales gains of 1.8% YoY in October 2018.
Despite Toyota’s US sales weakness, its profit margins remained much stronger than those of other automakers, including General Motors (GM), Ford Motor Company (F), Fiat Chrysler Automobiles (FCAU), and Honda Motor Company (HMC). Also, in the last year, TM’s presence in the US pickup truck segment has improved. Pickup trucks have yielded higher profit margins for automakers than small passenger cars.