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Research Alert: CFRA Keeps Hold Opinion On Adss Of Honda Motor Co., Ltd.
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Research Alert: CFRA Keeps Hold Opinion On Adss Of Honda Motor Co., Ltd.
Nov 7, 2025 9:07 AM

11:40 AM EST, 11/07/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We maintain our recommendation, reflecting a balanced view that weighs Honda's ( HMC ) proven resilience in its motorcycle and financial services segments against the severe, ongoing pressures in its automobile business. We lower our 12-month target price to USD32 from USD38, which implies a FY 26 P/E of 11.2x, a direct response to the materialization of major risks, including EV-related write-downs and significant tariff impacts. Despite these substantial headwinds, we keep our FY 26 and FY 27 EPS estimates of JPY150 and JPY198, respectively, as the company's aggressive cost mitigation, accelerated share buybacks, and the motorcycle division's record profitability provide a sufficient earnings base and cash flow support to offset further deterioration. Consequently, we think our Hold rating balances the limited near-term catalysts for multiple expansion against a defensible valuation floor given the company's solid liquidity.

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