Toyota Motor (TM) Gets Price Target Boost After 20% ROE Goal Announcement

Toyota Motor Corporation (NYSE:TM) ranks among the best Asian stocks to buy. On August 18, Bernstein SocGen Group raised its price target for Toyota Motor Corporation (NYSE:TM) from JPY2,550 to JPY3,500, upgrading it from Market Perform to Outperform. The boost comes after Toyota Motor Corporation (NYSE:TM) announced a 20% return on equity (ROE) target, which Bernstein considers a major shift for the historically conservative automaker that doesn’t commonly disclose precise financial targets.

Given the continuous acceleration of hybrid electric vehicle (HEV) sales as a short-to-mid-term profit driver, Bernstein believes Toyota Motor Corporation (NYSE:TM) could meet this ROE objective before the company’s own timeframe.

The firm also cited Toyota’s projected JPY165 billion value chain profit gain in the current fiscal year as a reason for the company’s better financial results.

Toyota Motor Corporation (NYSE:TM), the world’s largest carmaker in terms of sales volume, designs, produces, assembles, and distributes passenger cars, minivans, commercial vehicles, and associated parts and accessories worldwide.

While we acknowledge the potential of TM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

Disclosure: None. This article is originally published at Insider Monkey.