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7267: Stronger Revenue Outlook And Rising Dividend Will Support Shares

Emerging Markets And Electrification Will Drive Mobility Transformation

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7267
AnalystHighTarget
Not Invested
Published 02 Jun 2025

Update shared on 14 Dec 2025

Fair value Increased 5.26%
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AnalystHighTarget's Fair Value
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1Y
23.5%
7D
3.9%

Analysts have raised their price target on Honda Motor from JPY 1,900 to JPY 2,000, citing stronger expected revenue growth despite only modest changes in the discount rate, profit margin assumptions, and future valuation multiples.

What's in the News

  • Honda Motor revised its consolidated earnings guidance for the fiscal year ending March 31, 2026, projecting sales revenue of JPY 20,700,000 million and operating profit of JPY 550,000 million, with profit attributable to owners of the parent expected at JPY 300,000 million and earnings per share of JPY 75.05 (company guidance).
  • The company announced a second quarter dividend of JPY 35.00 per share for the period ended September 30, 2025, up from JPY 34.00 per share a year earlier, with payments scheduled to commence on December 5, 2025 (company announcement).
  • A board meeting is scheduled for November 7, 2025, with the agenda focused on considering the dividend, indicating continued attention to shareholder returns (board meeting notice).

Valuation Changes

  • Fair Value: Raised from ¥1,900 to ¥2,000, indicating a modest upward revision in the target valuation.
  • Discount Rate: Increased slightly from 10.99% to 11.10%, reflecting a marginally higher required return.
  • Revenue Growth: Upgraded from approximately 3.23% to about 4.69%, signaling a meaningful improvement in expected top line expansion.
  • Net Profit Margin: Trimmed slightly from around 4.81% to roughly 4.77%, implying a minor downward adjustment in profitability assumptions.
  • Future P/E: Reduced modestly from 7.44x to about 7.28x, suggesting a slightly more conservative earnings multiple for future valuation.

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Disclaimer

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