In a report published Thursday, Jefferies analyst Takaki Nakanishi initiated a Hold rating on Toyota Motor TM and initiated a price target of $135.75.
In the report, Jefferies says "Key arguments in our Hold rating are as follows: (1) three-year operating profit CAGR of 4% in FY3/15–FY3/17 looks mediocre, well below the sector average of 7%; (2) Toyota is unlikely to lift its 30% benchmark payout ratio anytime soon, so expectations of higher dividends are overblown, creating the risk of disappointment; (3) we take the view that the company's business reform benefit would not be fully up and running until 2015 or beyond, creating mediocre medium-term product competitiveness, production capacity shortages hampering volume growth, and a cost-push stemming from soaring investments for the future."
Toyota Motor closed on Wednesday at $126.05.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in