Japan Automobiles: Earnings Forecasts Revised Upward

Goldman Sachs raised FY3/27 earnings forecasts for five Japanese automakers, citing the tailwind of a weaker yen and improved US sales, despite rising memory costs.

Key Takeaways

• 1.Upward revision of earnings forecasts for major Japanese automakers driven by a weaker yen and favorable US sales incentives.
• 2.Cost-push inflation from raw materials persists, with higher memory prices partially offsetting the tailwind of a weaker yen.

Table of Contents

• Earnings forecast changes
• Raw materials show a mix of strengths and weaknesses: naphtha falls but memory prices rise
• US volume trends are favorable
• Cases of net cash > market capitalization have also emerged
• Earnings summary
• Investment Thesis - Honda Motor
• Price Target Risks and Methodology - Honda Motor
• Investment Thesis - Subaru Corp.
• Price Target Risks and Methodology - Subaru Corp.
• Investment Thesis - Mazda Motor
• Price Target Risks and Methodology - Mazda Motor
• Investment Thesis - Toyota Motor
• Price Target Risks and Methodology - Toyota Motor
• Investment Thesis - Nissan Motor
• Price Target Risks and Methodology - Nissan Motor

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