Citi downgrades Toyota (TYIDF) to a HoldWe raise our target price for but downgrade to Neutral from Buy. We regard the takeover price as reasonable and expect the takeover to succeed. We estimate fair value for the shares at ¥16,000, taking into account current macro developments, the multiples of peers, and the target prices we assign to the firm’s shareholdings (¥3,200 for Toyota Motor, etc.) The tender offer price for the bid slated for early December is ¥16,300, and as we see little chance of the shares falling below this level, we set this as our target price. Moving forward, however, there could be an impact on the tender offer price if the value of the firm’s shareholdings were to significantly exceed our expectations. Target price — We lift our target price mainly as we hike our discount rate, to 100% from 80% previously.