CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We revise our 12-month target price to USD26 (from USD25), which implies a forward P/E of 9.7x based on our revised FY 27 (Mar.) EPS estimate of JPY423 (up from JPY297). We also initiate our FY 28 EPS estimate of JPY579. Our upward revision reflects a clearer near-term earnings trough following Honda's decisive reassessment of its automobile electrification strategy, which resulted in total EV-related losses in FY 26 but allows the company to focus on its profitable hybrid electric vehicle (HEV) and motorcycle operations. The motorcycle business continues to deliver record-high sales volumes and operating profit, supported by strong demand in India and Brazil, while the automobile business is projected to benefit from a renewed focus on HEVs, particularly in North America, where the company plans to increase production and introduce new models. Honda's sound financial foundation supports a stable dividend.