BofA Raises Toyota Target Following News Of 2 EV Launches In 2021

Toyota Motor Corp TM is poised to benefit in 2021 from increased focus on carbon neutrality and the shift to battery electric vehicles, according to BofA Securities.

The Toyota Motor Analyst: Kei Nihonyanagi maintained a Buy rating for Toyota, while raising the price target from 9,500 Japanese yens ($89.58) to 9,700 Japanese yens ($91.46).

The Toyota Motor Analyst: Management has made two announcements related to the U.S. market: the launch of two battery electric vehicles (BEV) in 2021 and electrification targets of 40% for 2025 and 70% for 2030, Nihonyanagi said in the note.

“We think Toyota will probably extend these plans/targets to the global arena and, given the current global acceleration in electrification, we would expect substantial revisions to the current sales target of >1mn ZEV (BEV + fuel-cell vehicles [FCV]) in 2030,” the analyst wrote.

“Production in Japan has been impacted by difficulties in obtaining parts after the 13 February earthquake, but we assume Toyota can catch up comfortably in FY3/22 even in our worst case,” he added.

TM Price Action: Shares of Toyota Motor declined by 0.2% to $152.45 on Wednesday.

(Photo: Toyota)