Yamaha Motor Co (YAMHF – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Lisa Jiang from Morgan Stanley downgraded the rating on the stock to a Hold and gave it a Yen1,100.00 price target.
Lisa Jiang’s rating is based on a combination of factors including a weaker core market for motorcycles in Indonesia and high raw material costs. Additionally, the marine segment is experiencing a slower recovery in North America, particularly for outboard motors, RVs, and SPVs. The impact of US reciprocal tariffs on outboard motors and motorcycles is also a concern, contributing to the decision to lower the price target.
Despite some recovery in earnings from a low point in fiscal year 2024 and the booking of significant one-time restructuring costs, the outlook for a swift market recovery, especially in North America, remains uncertain. The company’s performance has lagged behind the TOPIX index, and despite stable sales growth in emerging markets, significant improvement in certain segments seems unlikely in the near term. The reduction in shareholder buybacks further supports the Hold rating, reflecting limited upside potential.