Nomura Securities Maintains a 'Buy' on Toyota Motor (TM); Projecting Sharp Recovery in Operating Profits

Nomura Securities maintains a 'Buy' on Toyota Motor (NYSE: TM).

Analyst, Masataka Kunugimoto, said, "...share price does not reflect prospects of sustained strong growth in 14/3: Toyota Motor has been working to improve profits on models exported from Japan, which used to be highly unprofitable, via lowering costs as and when models are revamped, and at 9x our EPS forecast for 14/3, when we expect earnings to normalize, the stock appears particularly undervalued versus the company’s product competitiveness and financial strength. We set a target price of ¥4,100 by multiplying our 14/3 EPS forecast of ¥343.7 by a P/E of 12x, a little higher than the Russell/Nomura Large Cap Index average of 11x to reflect Toyota’s lead in hybrid vehicles. We forecast 13/3 Q1 operating profits of ¥310bn, a ¥418bn improvement y-y."

For an analyst ratings summary and ratings history on Toyota Motor click here. For more ratings news on Toyota Motor click here.

Shares of Toyota Motor closed at $78.04 yesterday.

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