JPMorgan initiates Toyota Tsusho stock with Overweight rating

Published 30/09/2025, 12:34
JPMorgan initiates Toyota Tsusho stock with Overweight rating

Investing.com - JPMorgan has initiated coverage on Toyota Tsusho Corp (TYO:8015) with an Overweight rating and a price target of JPY5,360.00.

The investment bank identified Toyota Tsusho as its top pick within the sector, citing the company’s advantageous strategic priorities through its focus on automotive and African businesses, including automobile sales and pharmaceutical wholesale operations.

JPMorgan based its price target on its FY2025 BPS estimate and a theoretical P/B of 2.05x, calculated using a medium-term ROE forecast of 14.7% and cost of equity of 7.2%.

The firm expressed positive sentiment toward Toyota Tsusho’s stronger commitment to a minimum 15% ROE target under new President Toshimitsu Imai, along with the company’s stated intention to more flexibly repurchase shares, which represents a shift from its previously passive stance.

JPMorgan also noted that while uncertainty over the unwinding of cross-shareholdings within the Toyota Group affected the company’s share price through spring 2025, the clarification of the unwind with Toyota Industries represents a positive development.

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