:max_bytes(150000):strip_icc()/GettyImages-1972168374-1f3ae9f4866e42429febcd253ca87bda.jpg?w=1500&resize=1500,1000&ssl=1 "Toyota’s Stock Surges on Reported Plans to Raise Its Return on Equity | Global News Avenue")
Toyota’s Stock Surges on Reported Plans to Raise Its Return on Equity
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1972168374-1f3ae9f4866e42429febcd253ca87bda.jpg)
Main points
- Nikkei reported that Toyota Motor Corp. is targeting a 20% return on equity, sending the company’s U.S.-listed shares sharply higher on Thursday.
- According to reports, analysts expect a return on equity of 11% for the current fiscal year.
- A few days ago, two of Toyota’s rivals, Honda and Nissan, announced plans to merge.
Toyota Motor Corporation (TM) U.S.-listed shares surged on Thursday after reports the automaker wanted to double its target Return on Equity (ROE).
According to Japanese financial reports, the Japanese auto giant plans to increase ROE to 20% Nikkei Index, That’s about twice what analysts expected for the current fiscal year.
Bloomberg It was later reported that a company spokesman said Toyota had no clear target or deadline for reaching that number.
The news comes just days after the Japanese auto industry suffered a severe economic crisis. announcement from Honda (Hamaka) and Nissan said the two companies planned to merge. Moody’s Analyst applaud The move believes it will be “credit positive” if implemented correctly. However, former Nissan CEO Carlos Ghosn warned in an interview that Nissan could face a “carnage” of cost-cutting under such an arrangement.
Toyota shares rose more than 8% to $196.22 in intraday trading Thursday, and are up nearly 7% so far in 2024.
trading view
:max_bytes(150000):strip_icc()/GettyImages-1972168374-1f3ae9f4866e42429febcd253ca87bda.jpg?w=1200&resize=1200,0&ssl=1&description=Toyota%E2%80%99s+Stock+Surges+on+Reported+Plans+to+Raise+Its+Return+on+Equity+%7C+Global+News+Avenue){kind=link}