Honda Motor Co. Rating Increased to Outperform at Zacks (HMC)

Honda Motor Co. (NYSE: HMC) was upgraded by Zacks from a “neutral” rating to an “outperform” rating in a research note issued to investors on Monday. The firm currently has a $38.00 price target on the stock.

Zacks’ analyst wrote, “Honda expects to benefits from its global network and business expansion in Asia.
The automaker is well positioned to take advantage of stricter environment regulations given its long-term focus on hybrid vehicles. Given these factors and favorable model mix and effective cost reduction measures, the company anticipates a revival in sales and profits for fiscal 2013. Although it missed the Zacks Consensus Estimate by $0.14 per share, the company posted a steep 61% increase in profits to 71.6 billion ($871 million) in the fourth quarter of the fiscal 2012. As such, we have upgraded the recommendation on the shares of the company to Outperform from Neutral and set a target price of $38.00.”

Separately, analysts at Credit Suisse (NYSE: CS) upgraded shares of Honda Motor Co. from a “neutral” rating to an “outperform” rating in a research note to investors on Monday, May 7th.

Honda Motor Co. traded down 0.87% on Monday, hitting $31.92. Honda Motor Co. has a 1-year low of $27.52 and a 1-year high of $41.23. The company has a market cap of $57.529 billion and a price-to-earnings ratio of 21.86.

Honda Motor Co, Ltd. (Honda) develops, produces and manufactures a variety of motor products, ranging from small general-purpose engines and scooters to specialty sports cars.

Source;
http://zolmax.com/honda-motor-co-rating-increased-to-outperform-at-zacks-hmc/2910189/

Honda (HMC) may outrun the recession

No large car company is going to do well as the global recession deepens. But the one best positioned to move through the tough period is Honda (NYSE: HMC). It did not go through the global factory expansion that has stretched Toyota's (NYSE: TM) resources. It builds small, quality, fuel-efficient cars that have gained more and more market share in almost ever major country.

Results out of China say something about Honda's relative success. According toThe Wall Street Journal, "Chery Automobile Co., China's most successful independent producer and marketer of cars without a foreign partner, said January sales rose, and forecast a sales increase this year, while Honda Motor Co. said January car sales in China increased 17% from a year earlier." Total car sales dropped almost 8% in the world's most populous nation last month.

Based on data from 2008, most foreign car companies selling vehicles in China had drops in sales year-over-year. That makes Honda's performance all the more impressive. China is now the second largest car market in the world, after the U.S. The penetration of cars per household is obviously much lower than in America. In an economic recovery China vehicle sales ought to move back to double-digit growth. The Big Three may not have the financial resources to take full advantage of that, which makes Honda's position even better.

Which car company's shares are likely to do best over the next year? It would not be smart to bet against Honda.

Douglas A. McIntyre is an editor at 24/7 Wall St.

Source;
http://www.bloggingstocks.com/2009/02/18/honda-hmc-may-outrun-the-recession/