NEW YORK - Toyota Motor Corp., with its sights set on further expansion outside Japan, could see its stock price and market share rise significantly, according to a report in this week's Barron's financial publication.
"Toyota has yet to fully flex its muscles outside its home country," the article said, citing China as one of Toyota's biggest untapped growth opportunities for the long term.
"For those willing to take a long-term view, Toyota stock is so cheap that this may be the time to buy a stake in what is arguably the world's best car company. The stock could well rise by more than 35 percent over the next 12 months to 3,500 yen," the report said.
With Toyota already challenging DaimlerChrysler for third place in light-vehicle sales in the United States, the article said, many observers believe the Japanese carmaker could boost its U.S. market share from 10 percent to at least 12 percent or 13 percent by 2013. Each percentage point is worth about $1 billion in profit.
"If there's one company to buy now amid all the doom and gloom, then it's the company that has low costs and hot-selling vehicles. On both counts, that's Toyota," Jim Coxon, a senior investment advisor for the New York State Teachers' Retirement System, told Barron's.