Toyota (NYSE: TM) shares have found strong support above $140 level, and Wall Street remains bullish on this company. Toyota reported that U.S. sales jumped 87% in March, and according to the latest news, the company is considering working together with Tesla on developing a small SUV platform.
Fundamental analysis: Toyota reported that U.S. sales jumped 87% in March
Toyota is the largest automobile manufacturer in Japan and a global market leader in sales of hybrid electric vehicles. Toyota’s business is going well, and according to the latest news, the company is considering working together with Tesla on developing a small SUV platform.
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Some rumors say that Toyota will provide the vehicle platform while Tesla would offer the electronic control and software technology. Another positive news is that Toyota’s U.S. sales jumped 87% last month.
“Toyota division sales grew 83.6% Y/Y to 220,597 units, and Lexus division sales surged 112.9% to 33,186 units. APV sales more than tripled in March while Hybrid sales soared 290.7% to 60,133 vehicles,” Toyota reported last week.
China’s retail sales of passenger cars rose 69% in Q1, representing the strongest quarterly growth in recent decades. Toyota increased its forecast for the full fiscal year ending March 2021 to 7.6 million units, and the company plans to lead the auto industry, not just in Japan.
Toyota increased its revenue for the 2020 fiscal year to $258B from $253B in the 2019 fiscal year, and the growth projects will ensure that the numbers will be moving up in the future. With more deployment of the vaccines, analysts expect that demand for vehicles will continue to grow, and they remain very optimistic about 2021 in terms of growth, especially in the second half.
Toyota shares have found strong support above $140, and lots of analysts say that the current price appears to be lower than the company’s fundamental value. The company’s outlook remains stable, and with the market capitalization of $214B, this company is still undervalued relative to the other automobile manufacturers.
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Technical analysis: Bullish remain in control of the price action
Toyota shares are trading less than ten dollars below their record levels, and the first sign of the trend reversal could be if the price falls below the $140 support level.
The critical support levels are $140 and $120; $160, $170, and $180 represent the resistance levels. If the price jumps above $170 resistance, it would be a signal to buy shares, and the next target could be around $180.
On the other side, if the price falls below $140, it would be a firm “sell” signal, and the next target could be around $130 or even $120.
Summary
Toyota shares continue to trade in a bull market, and the first sign of the trend reversal could be if the price falls below the $140 support level. Toyota’s business is going well, and according to the latest news, the company is considering working together with Tesla on developing a small SUV platform.
