Japan autos: Visits with overseas investors

Research evidence excerpt

Japan autos: Visits with overseas investors

Nomura | Japan autos: Visits with overseas investors 23 June 2026

Nissan Motor [7201] (Neutral); Target price: ¥400

Many investors expressed positive views about progress with fixed cost reductions to

date. On the subject of future model launches and variable cost reductions, however,

there was a wide gap in views between investors who were upbeat and those who were

more skeptical, given the increase in the number of factors determined not only by the

company's own efforts but by external conditions as well. Some investors were also

interested in the possibility of a merger with Honda Motor [7267], which had previously

been under consideration from the end of 2024 through early 2025.

Toyota Motor [7203] (Suspended)

In their feedback, investors noted the cautiousness of full-year operating profit guidance,

and said they expected earnings upside as higher gasoline prices improve the

advantages of hybrid vehicles (HVs). As the view that HVs will drive earnings is already

widespread, though, many also said this is unlikely to serve as a new catalyst. Many

investors said that operating profit guidance appears to appropriately factor in the impact

of raw material costs. We had expected the company to provide a detailed explanation of

its efforts to achieve ROE of 20% when it released full-year 26/3 results, the first earnings

announcement under its new management team, but in the end it announced nothing

particularly new, and many investors were disappointed. At the same time, while the

results briefing materials were lacking in volume, many investors welcomed the mention

of the use of robotics.

Mitsubishi Motors [7211] (Neutral); Target price: ¥300

Some observers had thought that the company might improve its shareholder return