10:50 AM EDT, 05/19/2025 (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 12-month target to USD33 from USD34 on a FY 26 P/E of 8x (aligned with Honda's ( HMC ) five-year average) due to a reduced EPS forecast of JPY597 from JPY729. This is based on near-term tariff impacts (-JPY650 billion) and softer Chinese demand. Yet, Honda's ( HMC ) profitability outlook remains robust, supported by cost-cutting initiatives, Honda Architecture adoption, and capacity rationalization. Despite FY 26 headwinds, we maintain Buy as current valuations discount overly pessimistic scenarios. Consumer spending recovery in key markets, HEV momentum in North America, and a disciplined JPY1.1 trillion buyback (53.6% complete) underpin upside potential. Our new FY 27 EPS of JPY720 anticipates margin normalization post-tariff absorption and platform scalability gains, reinforcing Honda's ( HMC ) long-term earnings trajectory. The upcoming Business Briefing (May 20) will clarify strategic adjustments, but current valuations appear attractive given Honda's ( HMC ) defensive strengths and proactive capital return policies.