11:30 AM EDT, 09/12/2025 (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 raise our 12-month target price for Honda ( HMC ) to USD38 from USD33, implying a 12.5x P/E multiple on our unchanged FY 26 EPS estimate of JPY450, as Q1 results and updated guidance justify a higher valuation framework despite maintaining our Hold recommendation. This revision reflects increased confidence in management's ability to navigate near-term headwinds, evidenced by the upward revision to its FY 26 operating profit forecast due to refined tariff impact assumptions and disciplined cost execution. The higher multiple acknowledges Honda's ( HMC ) accelerated capital return progress, resilient motorcycle cash flows, and strategic repositioning in EVs, which collectively reduce downside risk and support a sector re-rating. However, we retain our Hold stance and unchanged EPS estimates due to persistent auto segment volatility, FX sensitivity, and the need for clearer evidence of sustainable EV profitability beyond current restructuring charges.