Toyota’s Strong Market Position and Strategic Initiatives Justify Buy Rating

Analyst Elizabelle Pang of DBS reiterated a Buy rating on Toyota Motor (TYT – Research Report), with a price target of Yen3,500.00.

Elizabelle Pang has given her Buy rating due to a combination of factors that highlight Toyota’s strong market position and strategic initiatives. Toyota’s recent financial performance exceeded expectations, with higher-than-anticipated non-operating income and lower taxes contributing to a positive earnings surprise. Despite challenges in North America and Europe due to foreign exchange headwinds and increased material costs, Toyota’s income in Japan and Asia remained robust, helping to offset these difficulties.
Furthermore, Toyota’s leadership in the hybrid car market and its substantial global market share, which stands at 11.5%, underscore its competitive advantage. The company’s strategic investments in structural changes and its upcoming BEV platform launch in 2026 are poised to position Toyota favorably for the long-term transition in mobility. While the FY26 guidance suggests some margin pressure due to tariffs and currency fluctuations, Toyota’s cost reduction efforts and expansion plans are expected to mitigate these impacts, supporting the Buy rating.

In another report released on May 8, Nomura also maintained a Buy rating on the stock with a Yen3,200.00 price target.