Analysts Don’t Buy Toyota's Modesty
May 30, 2007

Toyota has been careful about boasting its No. 1 in global sales status while, at the same time, U.S. automakers close plants and cut jobs. Toyota executives, in fact, have downplayed the Japanese automaker’s sales outlook in North America, saying sales will slow.

But analysts and investors don’t buy it, according to a report today by Bloomberg News. They suspect Toyota is being cautious for fear of a political backlash.

They agree Toyota can't match last year's 15 percent sales growth, but most say Toyota is being too modest. "Toyota's sales growth forecast in North America seems too conservative,'' Koji Endo, a senior analyst at Credit Suisse Group in Tokyo, told Bloomberg. "Its outlook sales figure seems to be political.''

Toyota has exceeded its own North American sales outlook each year for at least the past four years, Bloomberg reports, and experts predict this year will be no exception. They forecast Toyota’s North American sales will grow as much as five times faster than what the carmaker predicts for the year ending next March 31.

Analysts see demand for Toyota's fuel-efficient models increasing. In addition, Toyota will introduce at least 10 new or redesigned models in the U.S. this fiscal year, including the Lexus LS 600h gasoline-electric hybrid and a revamped version of the Corolla compact car.

Worldwide, Toyota is poised to surpass GM in global sales for the year, as it did in the first quarter.

The good news has prompted 16 of 22 analysts surveyed by Bloomberg to rate Toyota stock a "buy'' at certain target prices, seemingly disregarding Toyota prediction for its smallest profit growth in six years.

Posted by Michelle Krebs at 5:39 AM under Analysis , Toyota | Comments (0) | digg this | Seed Newsvine