According to a report published by StreetInsider.com, Japan-based Toyota Motor Corp. (TM) plans to invest nearly $35 billion for the launch of 30 battery-powered electric vehicles (EV) by 2030.
It had earlier committed to launch 15 EVs by 2025.
The multinational automotive company manufactures and sells passenger and commercial vehicles as well as related parts and accessories.
Toyota’s shares closed 3.4% down on Monday but gained 0.3% in after-hours trading to end the day at $176.70.
Additional Details
The company also plans to invest around $70 billion for the electrification of its fleet and aims to sell 3.5 million EVs by 2030.
Meanwhile, it is also targeting to make its manufacturing process carbon-free by 2035. (See Insiders’ Hot Stocks on TipRanks)
CEO Comments
The CEO of Toyota, Akio Toyoda, said, “In this diversified and unchartered era, it is important to flexibly change the types and quantities of products produced while keeping an eye on the market trends.”
“We believe that quickly adapting to changes in the future is more important than trying to predict the future, which is nothing but uncertain. We want to keep options available for our customers until the right path is known.”
Wall Street’s Take
Recently, Bank of America Securities analyst Kei Nihonyanagi reiterated a Buy rating on the stock and raised the price target from $210.70 to $218 (23.8% upside potential).
The analyst said, “The stock is undervalued and should remain an excellent defensive play in an uncertain environment.”
“The P/E stands at a mere 7.6x based on our FY3/23 forecasts, and we continue to regard Toyota as a core holding,” Nihonyanagi added.
Overall, the stock has a Moderate Buy consensus rating based on a single Buy. The average Toyota Motor price target of $218 implies 23.8% upside potential. Shares have gained approximately 15% year-to-date.
Hedge Funds’ Confidence
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Toyota is currently Positive, as the cumulative change in holdings across all three hedge funds that were active in the last quarter was an increase of 163,600 shares.
Related News:
Claros Mortgage Trust Posts Upbeat Q3 Results
Starbucks China to Probe Expired Ingredients Usage
Nucor to Buy Majority Stake in California Steel Industries; Shares Gain
