Update shared on 01 Nov 2025
Narrative Update on Honda Motor: Analyst Price Target Adjustment
Analysts have maintained their fair value estimate for Honda Motor at ¥1,744.38, citing stable profit margins and consistent revenue growth expectations as justification for leaving the price target unchanged.
What's in the News
- Completed repurchase of 746,480,900 shares, representing 17.03% of outstanding shares, under a buyback plan totaling ¥1,099,999.88 million as of September 10, 2025. (Buyback Tranche Update)
- Entered a multi-year joint development agreement with Helm.ai to accelerate Honda's next-generation self-driving capabilities and Advanced Driver Assistance Systems. Mass production is targeted after 2027. (Strategic Alliances)
- Raised consolidated earnings guidance for the fiscal year ending March 31, 2026, with expected sales revenue of JPY 21,100,000 million and profit attributable to owners of the parent now forecast at JPY 420,000 million. The update cites tariff impact analysis and updated foreign exchange assumptions. (Corporate Guidance - Raised)
Valuation Changes
- Fair Value Estimate: Remained unchanged at ¥1,744.38.
- Discount Rate: Held steady at 11.02%.
- Revenue Growth: Maintained at approximately 1.35%.
- Net Profit Margin: Essentially unchanged at 3.80%.
- Future P/E Ratio: Stable at roughly 9.17x.
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.