Honda Motor (HMC) Raised to “Buy” at Zacks Investment Research

Honda Motor (NYSE:HMC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Wednesday. The firm currently has a $31.00 price objective on the stock. Zacks Investment Research‘s target price suggests a potential upside of 10.99% from the company’s current price.

According to Zacks, “In second quarter of fiscal 2019, Honda’s revenues and profit improved year over year. Also, in the past three months, shares of the company outperformed the industry it belongs to. Its Vision 2030 plan aims to boost coordination between research and development as well as procurement and manufacturing of its products that will aid the company reduce developmental costs and focus more on electric vehicles. Further, the company’s collaboration with other companies to develop autonomous and electric vehicles will allow it offer new technologies and expand business. Also, the company’s stocks have outperformed the industry it belongs to, over the past three months. However, Honda’s frequent vehicle recalls not only reduce consumers’ confidence in a brand, but also add to expenses. Also, high research and development costs are adding to its expenses.”

Separately, ValuEngine lowered Honda Motor from a “sell” rating to a “strong sell” rating in a report on Friday, November 2nd. One investment analyst has rated the stock with a sell rating, two have given a hold rating and five have assigned a buy rating to the stock. The company has a consensus rating of “Buy” and a consensus target price of $36.50.

Shares of HMC stock opened at $27.93 on Wednesday. The company has a current ratio of 1.22, a quick ratio of 0.94 and a debt-to-equity ratio of 0.48. The firm has a market cap of $50.59 billion, a P/E ratio of 7.72, a price-to-earnings-growth ratio of 2.65 and a beta of 0.97. Honda Motor has a 1-year low of $26.04 and a 1-year high of $37.29.

Honda Motor (NYSE:HMC) last posted its earnings results on Tuesday, October 30th. The company reported $1.07 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.79 by $0.28. The company had revenue of $34.46 billion for the quarter, compared to analyst estimates of $34.59 billion. Honda Motor had a return on equity of 9.17% and a net margin of 7.29%. Equities analysts predict that Honda Motor will post 3.64 EPS for the current fiscal year.

A number of institutional investors have recently bought and sold shares of HMC. Bank of Montreal Can acquired a new stake in Honda Motor in the second quarter valued at $1,619,000. Acadian Asset Management LLC acquired a new stake in Honda Motor in the second quarter valued at $1,951,000. Financial Consulate Inc. grew its holdings in Honda Motor by 4.5% in the second quarter. Financial Consulate Inc. now owns 110,927 shares of the company’s stock valued at $3,247,000 after purchasing an additional 4,767 shares during the last quarter. Eqis Capital Management Inc. grew its holdings in Honda Motor by 14.9% in the second quarter. Eqis Capital Management Inc. now owns 23,111 shares of the company’s stock valued at $676,000 after purchasing an additional 2,998 shares during the last quarter. Finally, Community Financial Services Group LLC grew its holdings in Honda Motor by 10.8% in the second quarter. Community Financial Services Group LLC now owns 54,550 shares of the company’s stock valued at $1,596,000 after purchasing an additional 5,300 shares during the last quarter. 2.15% of the stock is currently owned by institutional investors.

About Honda Motor

Honda Motor Co, Ltd. develops, manufactures, and distributes motorcycles, automobiles, power products, and other products worldwide. The company operates through four segments: Motorcycle Business, Automobile Business, Financial Services Business, and Power Product and Other Businesses. The Motorcycle Business segment produces sports models, including trial and moto-cross racing vehicles; business and commuter models; all-terrain vehicles; and side-by-side models.

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