Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, June 16, 2023

Article Excerpt

TOYOTA MOTOR CO. ADRs, $164.35, New York symbol TM, is a buy. The ADRs (each American Depositary Receipt equals two common shares) give you exposure to the world’s largest automaker. The stock rose 10% this week after Toyota announced that it will build a commercial solid-state battery plant. Solid-state batteries charge faster and last longer than the lithium-ion batteries that currently power most electric vehicles (EVs). It aims to begin producing these new batteries by 2027. Toyota will also produce a range of lithium-iron phosphate batteries. They increase an EVs range by 20% and are 40% cheaper than lithium-ion batteries. The company has not yet said how much it will spend on these initiatives. However, the Japanese government has offered subsidies of roughly $854 million. To put that in perspective, Toyota’s market cap is $224.2 billion. For its current fiscal year, ending March 31, 2024, Toyota will probably earn $17.03 per ADR, and the stock trades at 9.7 times that forecast. The $4.26 dividend yields…