Zhitong Finance and Economics noted that after Macquarie** upgraded its rating, Toyota Motor (TMUS) has received unanimous bullishness from the market, with 10 of the 14 investment banks covering the company giving it a "**" rating and 4 investment banks giving it a "hold" rating.
Macquarie analyst James Hong wrote in a note: "We are clearly underestimating its strong cash generation capabilities. "We believe that its vertically integrated ** chain and agile production capabilities put the company in the 'sweet spot'. ”
Macquarie cited Toyota's third-quarter earnings report as an example, which beat expectations and showed strong cash flow. In the fiscal third quarter ended December 31 last year, Toyota's operating profit totaled 168 trillion yen, an increase of 757%, which is more than the analyst average** of 13 trillion yen.
Toyota also expects a profit for the year from 4 previously5 trillion yen raised to 49 trillion yen ($33 billion), well above the analyst average** of 46 trillion yen.
Toyota's upward revision is in stark contrast to the pessimistic expectations of many of its competitors. Other automakers have warned of tepid sales growth this year and announced production cuts due to high interest rates and slowing demand for electric vehicles.
Toyota, which has a market capitalization of more than 50 trillion yen ($337 billion) this week, shares were worth more than 4% on Thursday** and the stock is on track for another record after several brokerages raised their price targets for the stock.