Analysts on Honda
As of March 28, 60% of the analysts covering Honda Motor Company (HMC) have given it “buy” recommendations. The remaining 40% of analysts have given it “holds.” Currently, no surveyed analysts have recommended “sells” on the stock.
The above-mentioned ratings are based on the consensus data provided by 20 Wall Street analysts compiled by Thomson Reuters.
Like its Japanese peer (VCR) Toyota Motor (TM), Honda is not directly listed on any stock exchange in the US market, but the ADRs (American depositary receipt) of both these companies trade on the NYSE.
Upside potential of over 25%
On March 28, analysts’ 12-month consensus target price for HMC was $34.29, suggesting a potential upside of ~25.6% from its market price of $27.30.
Analysts’ consensus target price on HMC has fallen significantly from near $41 about a year ago. However, HMC’s upside potential of 25.6% was still slightly better than the ~24.5% upside potential of Toyota’s ADR.
Recent updates on Honda
In February 2019, Honda’s US sales fell 0.4% YoY (year-over-year). While the company’s car sales fell 6.0%, it’s truck sales rose 4.6% YoY in February, which could help it boost its profit margin in the first quarter. In February, the company’s US manufactured car sales fell 11.7% YoY, whereas its imported car sales rose significantly by 72.5% YoY.
In 2018, Honda reported a 2.2% YoY fall in its total US sales, which included a 9.0% fall in its passenger car sales and a 4.2% rise in its truck sales.