Toyota Motor Corporation (TM) currently holds an average brokerage recommendation (ABR) of 1.75, which suggests a position between Strong Buy and Buy, based on recommendations from eight brokerage firms. Notably, 62.5% of these analysts have issued Strong Buy ratings.
Despite the positive ABR, analysts have downgraded their earnings estimates for Toyota, with a 3.2% decline in the Zacks Consensus Estimate for the current year, now set at $19.90 per share. This shift in sentiment has contributed to a Zacks Rank of #5 (Strong Sell) for the company, indicating potential risks for investors.
It is important to note that brokerage recommendations might not accurately reflect a stock’s potential due to analysts’ biases influenced by their firms’ interests, suggesting that investors should use such ratings in conjunction with other analytical tools like the Zacks Rank for better investment decisions.
