In response to a recently imposed 25% tariff on imported vehicles, Honda Motor Co. (HMC, Financial) is exploring a strategic shift in its manufacturing operations. The company is contemplating moving some of its production from Mexico and Canada to the United States. This move is part of Honda's broader effort to mitigate the impact of the tariff introduced by the U.S. administration.
Honda intends to increase its U.S. car production by up to 30% over the next two to three years. This adjustment aims to meet approximately 90% of the company's U.S. unit sales with vehicles produced domestically. By enhancing its local production capabilities, Honda seeks not only to avoid hefty import duties but also to strengthen its competitive position within the American market.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for Honda Motor Co Ltd (HMC, Financial) is $40.12 with a high estimate of $41.57 and a low estimate of $38.68. The average target implies an upside of 42.53% from the current price of $28.15. More detailed estimate data can be found on the Honda Motor Co Ltd (HMC) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Honda Motor Co Ltd's (HMC, Financial) average brokerage recommendation is currently 1.3, indicating "Buy" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Honda Motor Co Ltd (HMC, Financial) in one year is $39.73, suggesting a upside of 41.14% from the current price of $28.15. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Honda Motor Co Ltd (HMC) Summary page.
