According to a report from Japan’s Nikkei, the company intends to raise its ROE to 20%, which is approximately double the expectations set by analysts for the current fiscal year.
Subsequently, Bloomberg reported that a company spokesperson clarified that Toyota does not have a specific target or timeline for achieving this goal.
This development comes shortly after Honda and Nissan announced their plans to merge, which has stirred the Japanese automotive sector. Analysts at Moody’s praised the merger, suggesting it could be “credit positive” if executed effectively. Conversely, former Nissan CEO Carlos Ghosn cautioned in an interview that such a merger could lead to severe cost-cutting measures.
On Thursday, Toyota's shares rose by more than 8%, reaching $196.22 during intraday trading, and have seen an increase of nearly 7% for the year 2024 thus far.