Toyota Motor (TM) Gets Price Target Boost After 20% ROE Goal Announcement

Toyota Motor Corporation (NYSE:TM) ranks among the best Asian stocks to buy. On August 18, Bernstein SocGen Group raised its price target for Toyota Motor Corporation (NYSE:TM) from JPY2,550 to JPY3,500, upgrading it from Market Perform to Outperform. The boost comes after Toyota Motor Corporation (NYSE:TM) announced a 20% return on equity (ROE) target, which Bernstein considers a major shift for the historically conservative automaker that doesn’t commonly disclose precise financial targets.

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Given the continuous acceleration of hybrid electric vehicle (HEV) sales as a short-to-mid-term profit driver, Bernstein believes Toyota Motor Corporation (NYSE:TM) could meet this ROE objective before the company’s own timeframe.

The firm also cited Toyota’s projected JPY165 billion value chain profit gain in the current fiscal year as a reason for the company’s better financial results.

Toyota Motor Corporation (NYSE:TM), the world’s largest carmaker in terms of sales volume, designs, produces, assembles, and distributes passenger cars, minivans, commercial vehicles, and associated parts and accessories worldwide.

While we acknowledge the potential of TM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TM and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.