Citi raises Toyota stock price target to JPY3,200 on earnings growth

Published 02/06/2025, 11:22
© Reuters.

On Monday, Citi analysts raised the price target for Toyota Motor (NYSE:TM) stock to JPY3,200 from JPY3,000, while maintaining a Buy rating. The upgrade aligns with the broader analyst consensus of 1.75 (Buy) for Toyota, which currently trades at $190.57 with a market capitalization of $245 billion. Analysts cited value chain-driven earnings growth as a factor contributing to the decision, suggesting it could provide additional stability to Toyota’s earnings.

The analysts believe that the current share price does not fully reflect this growth potential, with Toyota currently trading at an attractive P/E ratio of 7.48. They also highlighted the company’s focus on improving the equity side of the return on equity (RoE) equation, aiming for a 20% target from its current 14% level.

Citi analysts noted that potential catalysts for Toyota in the second half of the year include share buybacks and a review of intra-group cross-holdings, particularly following the company’s annual general meeting.

The updated price target reflects the analysts’ revised earnings estimates for Toyota, which they believe will benefit from these strategic initiatives.

In other recent news, Toyota Motor North America reported a significant rise in U.S. sales for March 2025, with 231,335 vehicles sold, marking a 7.7% increase on a volume basis from March 2024. The sales of electrified vehicles soared, comprising nearly half of the total sales volume for the month. For the first quarter of 2025, Toyota sold 570,269 vehicles, showing a modest increase from the previous year, with electrified vehicles making up over 50% of the sales. In another development, Toyota is planning a $21 billion loan to privatize Toyota Industries (OTC:TYIDF), aiming to relieve the company from shareholder pressure. Additionally, Toyota is advancing its hydrogen truck deployment in California, unveiling plans for hydrogen-powered trucks and infrastructure investments during the 2025 Advanced Clean Transportation Expo. The company is also addressing the financial impact of new U.S. tariffs by pledging to assist its suppliers with increased costs. Meanwhile, Trigon Metals has finalized a $24 million sale of its Kombat Project to Horizon Corporation Limited and Kamino Minerals Limited, with the transaction pending shareholder approval and other customary conditions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.