, an analyst from Bank of America Securities, reiterated the Buy rating on Toyota Motor. The associated price target is Yen4,000.00.
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Merrill Lynch has given his Buy rating due to a combination of factors that enhance the risk‑reward profile of Toyota Motor’s shares. The firm highlights the earlier-than-expected launch of Toyota Industries’ tender offer and the meaningful increase in the offer price, which together reduce downside pressure on Toyota’s stock and improve the probability that the transaction will be completed on favorable terms. The raised tender offer price, set at a premium to the prior level and above the latest closing price, is interpreted as a constructive signal regarding the value attributed to Toyota-related holdings.
Merrill Lynch’s rating is based on an upgraded price objective for Toyota, lifted from ¥3,500 to ¥4,000, driven by a higher valuation multiple (a larger premium to historical PBR) that reflects supportive currency dynamics and a broader re-rating of the equity market. The analysts also factor in expectations for upcoming product cycles, including models such as the RAV4, which are seen as catalysts for earnings and sentiment. Additionally, the potential unwinding of cross-shareholdings—if Toyota ultimately acquires stakes currently held by Toyota Industries and possibly by Denso and Aisin—is viewed as a medium-term positive that could unlock further shareholder value, reinforcing the Buy recommendation.