10:45 AM EDT, 08/07/2025 (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 lower our rating on Honda ( HMC ) to Hold (from Buy) and reduce our FY 26 (Mar.)/FY 27 EPS estimates to JPY450 and JPY594 (from JPY597/JPY720), reflecting heightened execution risks and prolonged auto segment pressures. While Honda's ( HMC ) Q1 initiatives, including aggressive cost controls, supply chain realignment, and a buyback, support operating profit target, our view suggests persistent challenges, with auto margins remaining deeply negative due to unabsorbed EV transition costs and structural tariff headwinds, which could worsen if U.S. trade policies tighten further. The JPY140/USD1 assumption underpinning Honda's ( HMC ) profit uplift appears optimistic amid current JPY volatility, and motorcycle-led cash flows face saturation risks in key growth markets like Vietnam and Brazil. Our revised EPS incorporates a slower-than-expected auto profit recovery, FX downside, and limited near-term electrification ROI. Hence, we see insufficient catalysts to drive outperformance despite capital return support.