Loading...
Back to narrative

7203: North Carolina Battery Plant And Litigation Will Shape Balanced Outlook

Analysts Lift Toyota Target as Growth and Profit Outlook Improve Amid Strategic Developments

7203 logo
7203
AnalystConsensusTarget
Not Invested
Published 24 Nov 2024

Update shared on 10 Dec 2025

Fair value Increased 2.74%
Previous
n/a
n/a
AnalystConsensusTarget's Fair Value
n/a
Loading
1Y
20.8%
7D
7.5%

Analysts have modestly raised their price target on Toyota Motor, citing slightly stronger long term assumptions for fair value, revenue growth, profit margins and future valuation multiples that together support an incremental uptick of approximately ¥90 per share in estimated equity value.

What's in the News

  • Toyota began production at its new Liberty, North Carolina battery plant, a nearly JPY 14 billion investment that will create up to 5,100 jobs and serve as a key global hub for lithium ion battery output supporting HEVs, BEVs, and PHEVs.
  • The company issued consolidated earnings guidance for fiscal 2026, targeting sales revenues of JPY 49,000,000 million, operating income of JPY 3,400,000 million, and net income of JPY 2,930,000 million, equal to basic EPS of JPY 224.81.
  • Toyota declared a second quarter dividend of JPY 45.00 per share, up from JPY 40.00 a year earlier, with cash payment scheduled for November 26, 2025.
  • Perrone Robotics filed patent infringement lawsuits against Toyota and several other automakers in U.S. federal courts, alleging unauthorized use of its automated driving and robotics operating system technologies in vehicle software stacks.
  • Yokogawa and Toyota expanded collaboration on the Lunar Cruiser manned pressurized rover project with new agreements to develop prototype measurement and control equipment as Japan prepares for future lunar surface missions.

Valuation Changes

  • Fair value estimate has risen slightly from approximately ¥3,325 to ¥3,416 per share, reflecting modestly stronger long term assumptions.
  • The discount rate is unchanged at 11.1%, indicating no shift in the perceived risk profile or required return.
  • Revenue growth has been nudged higher from about 2.99% to 3.01% annually, signaling a marginally more optimistic top line outlook.
  • The net profit margin has increased slightly from roughly 7.62% to 7.66%, implying a small improvement in expected profitability.
  • The future P/E multiple has edged up from around 14.25x to 14.55x, suggesting a modestly higher assumed valuation for Toyota’s earnings.

Have other thoughts on Toyota Motor?

Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.

Create Narrative

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.