Toyota downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley analyst Shinji Kakiuchi downgraded Toyota to Equal Weight from Overweight with a price target of 2,400 yen, up from 2,200 yen. While Toyota’s announcement on June 13 regarding multiple new technologies for next-gen BEVs eased concern about the company lagging in that area, the firm says that competition in the BEV era “still looks challenging” and it questions if the strength of the Toyota brand and its suppliers hold in the BEV era. The firm’s higher price target reflects the weaker yen, but it argues that at current levels the risk-reward looks “balanced.”