Bernstein analyst Masahiro Akita maintained a Buy rating on Toyota (TYIDF – Research Report) today and set a price target of Yen16,050.00.
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Masahiro Akita has given his Buy rating due to a combination of factors that highlight Toyota’s strategic positioning and growth potential. One significant factor is the potential sale of Toyota Industries’ substantial stake in Toyota, which is seen as a positive catalyst for the share price. The sale could be executed through various scenarios, each potentially beneficial for both Toyota and its investors, such as a buyback, secondary offering, or privatization, which could enhance Toyota’s logistics solutions business or provide returns to shareholders.
Another reason for the Buy rating is Toyota’s limited exposure to US import tariffs, which minimizes geopolitical risks. Additionally, the Materials Handling Equipment business is expected to drive near-term growth, with forklift sales recovery and margin improvements in logistics solutions contributing to earnings growth. Expansion in logistics solutions and xEV-related products will further support Toyota’s mid-term earnings targets. Furthermore, there is additional upside potential in valuations if improved disclosure allows for the exclusion of net debt related to the Sales Finance business from consolidated figures.
In another report released on April 21, UBS also maintained a Buy rating on the stock with a Yen14,600.00 price target.