On Friday, UBS maintained its Buy rating on Toyota Industries (OTC:TYIDF) Corp. (6201:JP) (OTC: TYIDF) but lowered the price target to JPY18,100 from the previous JPY19,300. The adjustment reflects changes in foreign exchange assumptions and the impact of higher raw material prices. Despite these factors, the firm's perspective on the company's fundamentals remains the same.
UBS anticipates that new forklift orders for Toyota (NYSE:TM) Industries will reach a low point and then profitability will begin to increase. While the broader autos and parts sector may experience a decline in volumes and a compression of margins, the firm believes that Toyota Industries' relative advantage is set to grow.
The firm reiterated its confidence in the stock by maintaining a Buy rating. This decision comes alongside a revised earnings per share (EPS) forecast, with an increase of 3% for the fiscal years ending March 2025 and March 2026. The new price target of JPY18,100 takes into account a decrease in the value of investment securities.
The price target reduction and maintained Buy rating indicate that UBS sees continued potential in Toyota Industries despite the current challenges in the market. The firm's analysis suggests a positive outlook for the company's performance in the upcoming fiscal years.
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