Honda Canada has declared that its manufacturing plant in Alliston, Ontario, will continue running at full capacity, with no current plans for any changes in operations. This decision comes despite recent headlines suggesting otherwise. The company emphasized its commitment to utilizing strategic planning and short-term production shifts to handle potential business disruptions.
As Canada's second-largest automobile producer by volume in 2024, Honda (HMC, Financial) boasts that 69% of the Honda vehicles sold in Canada are domestically built, with nearly all vehicles sold being sourced from North American facilities. This approach supports the company’s adaptability to fluctuating market conditions, allowing for production adjustments based on consumer demand across different regions.
The Alliston facility's sustained full-capacity operation is attributed to robust domestic sales, which have surged by 9% in the first quarter this year. The Canadian-manufactured Honda Civic, recognized as Canada’s leading passenger car in 2024, and the Honda CR-V, the country's top-selling hybrid vehicle the same year, are major contributors to this sales increase.
Honda's commitment to maintaining its operations in Canada since 1986 underscores its dedication to both local manufacturing and its workforce. The company remains optimistic about its ability to effectively navigate the current market landscape while continuing to support its North American production strategy.
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 40.24% from the current price of $28.61. 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 $33.13, suggesting a upside of 15.8% from the current price of $28.61. 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.
