[Tokyo 15th Reuters]–Toyota’s stock price has risen to 10,000 yen for the first time. It hit a new high since its listing on May 18, and broke through the high ground in about a month. Although there are materials in terms of supply and demand such as stock splits, the market’s reputation is rising because it has shown a serious attitude toward electric vehicles (EVs).
The turning point is believed to be the April Shanghai Motor Show. Toyota announced that it will launch 15 electric vehicles (EVs) by 2025. Of these, seven models have shown their efforts to make them models of the newly launched EV-only brand.
Toyota’s stock price has been sluggish since March of this year, but it turned to an upward trend in May and accelerated the rate of increase until June. Although it announced a one-to-five stock split at the announcement of financial results in May, it is said that it has been well received that it has clearly launched an electrification route at the moment.
“The world’s automaker stocks have been bought in response to the focus on EVs,” said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities. Mr. Fujito says that the inflow of funds expected to strengthen EVs into Japanese car maker stocks is “just started” compared to European makers.
Takashi Hiroki, chief strategist at Monex, Inc., also points out that Toyota stocks have room for further gains. “Japanese stocks were delayed due to concerns about the delay in the new corona vaccine, but the main battlefields of automakers are the United States and China. There is plenty of room for global companies to review and buy in the future.”
Toyota stock has a market capitalization of about 32 trillion yen, which is the largest in Japan. It is considered to be one of the first stocks to be bought when foreigners incorporate Japanese stocks. With the 10,000 yen mark, it is easy to make profit-taking sales, but the current forecast PER (price-earnings ratio) is in the 11-fold range. Mr. Hiroki of Monex, Inc. said, “There seems to be room for a stock price increase of at least 20%.”
Masayuki Otani, director of the research and information department of Securities Japan, said that Sony (currently Sony Group) exceeded 10,000 yen at the end of last year, and the Nikkei average hit a high after the bubble in February as the market atmosphere increased. “Toyota may be the leader this time,” he said.
(Edited by Noriyuki Hirata: Daiki Iga)