In a recent announcement, Mexico's Economy Minister Marcelo Ebrard confirmed via social media that Honda (HMC, Financial) intends to maintain its current production operations within the country. This declaration follows a report suggesting that the Japanese automaker was contemplating relocating some of its manufacturing activities from Mexico and Canada to the United States due to impending tariff changes.
The initial report, which originated from Nikkei, speculated that Honda might alter its strategic production locations to mitigate the impact of new tariffs. However, Honda's management has reassured the Mexican government that there are no such plans to adjust their manufacturing strategy in Mexico at this time.
This development provides some clarity amidst ongoing discussions and concerns over the future of automotive production in North America, particularly in the context of the evolving trade environment. Honda's statement aligns with its current business operations strategy, signaling a commitment to its existing facilities and workforce in Mexico.
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 40.71% from the current price of $28.51. 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 16.19% from the current price of $28.5135. 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.
