In a report released yesterday, from Bank of America Securities maintained a Buy rating on Honda Motor Co, with a price target of Yen1,900.00.
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Merrill Lynch has given its Buy rating due to a combination of factors, including the recent developments in Vietnam regarding the regulation of gasoline motorcycles. The proposed relaxation of the full ban on gasoline-powered motorcycles in Hanoi, which is a significant market for Honda, alleviates concerns about potential earnings damage. This regulatory change is expected to positively impact Honda’s motorcycle sales, as the company is a major player in Vietnam’s market.
Additionally, the potential subsidies for switching to electric motorcycles could stimulate demand and sales growth, further supporting Honda’s market position. Merrill Lynch also notes the importance of monitoring sales developments and competition from electric vehicle makers like VinFast. Overall, the revised regulatory environment and potential market opportunities contribute to the positive outlook for Honda’s stock.