Toyota Motor (TM, Financials) was upgraded to Outperform by Bernstein SocGen on Monday, with the firm citing the automaker's new 20% return on equity target as a key driver. The analysts also raised their price target to JPY3,500 ($23.70) from JPY2,550 ($17.26).
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The firm said Toyota's accelerated hybrid electric vehicle sales and expected value chain profit growth of JPY165 billion ($1.12 billion) this fiscal year could help deliver the ROE target faster than the company's own timeline. Bernstein SocGen also pointed to capital restructuring, including the buyout of Toyota Industries, as a source of further ROE improvement.
Investors will watch whether Toyota can sustain hybrid momentum while managing the shift to fully electric models, a balancing act that could shape returns.
This article first appeared on GuruFocus.
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Toyota Upgraded to Outperform on ROE Target
Published 2 months ago
Aug 18, 2025 at 2:22 PM
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