Implied FVD Analyst Target Price: $49
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 29 2025
0mins
Should l Buy HMC?
Source: NASDAQ.COM
ETF Analysis: The First Trust Value Line Dividend Index Fund ETF (FVD) has an implied analyst target price of $48.99, suggesting a potential upside of 10.44% from its current trading price of $44.36 per unit.
Stock Performance Insights: Notable underlying holdings such as Diageo plc, Toyota Motor Corporation, and Honda Motor Co Ltd show significant upside potential based on analyst targets, raising questions about the validity of these targets in light of recent market developments.
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Analyst Views on HMC
About HMC
Honda Motor Co Ltd is a Japan-based company principally engaged in the motorcycle business, the automobile business, the financial service business and the life creation business. The Company operates through four business segments. The Motorcycle segment is engaged in the research and development, production and sale of motorcycles, all-terrain vehicles (ATVs), side-by-side vehicles and related parts. The Automobile segment is engaged in the research and development, production and sale of automobiles and related parts. The Financial Service segment is engaged in the sales financing and leasing of its products. The Power Products and Other Business segment is engaged in the research and development, production and sale of power products and related parts.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Potential Refunds: The U.S. Supreme Court is set to rule on February 20 regarding Trump's tariff regime, with a ruling in favor potentially triggering refunds exceeding $130 billion, significantly reshaping American trade policy.
- Increased Household Tax Burden: U.S. households are projected to face an average tax increase of $1,000 in 2025, rising to $1,300 in 2026, highlighting the direct economic impact of tariffs on ordinary citizens.
- Tariff Revenue Figures: According to CBP data, the U.S. collected over $200 billion in tariffs between January 20 and December 15, 2025, with total customs revenue for 2025 estimated at $264 billion, yielding a net gain of approximately $132 billion after accounting for economic drag.
- Market Reaction: Following Trump's April 2025
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- Policy Shift: The Canadian government has decided to allow the import of 49,000 Chinese electric vehicles, reducing tariffs from 106% to 6.1%, which will enable these vehicles to represent about 3% of Canada's new car market and approximately 20% of its battery EV and plug-in hybrid market, aiming to reduce reliance on the U.S. and revitalize domestic manufacturing.
- China-Canada Cooperation: In exchange for tariff reductions, China has agreed to lower tariffs on Canadian canola oil, a move that not only enhances Canadian agricultural exports but may also foster joint investments and collaborations in the EV sector, driving manufacturing revival.
- Market Outlook: With expectations for significant growth in the Canadian EV market by 2030, the relatively small import volume of 49,000 vehicles could have a substantial impact if these are primarily affordable models, potentially increasing consumer acceptance of electric vehicles.
- Manufacturing Challenges: Despite having resource advantages, Canada faces challenges in attracting manufacturing investments compared to Mexico and the U.S., where lower manufacturing costs and larger markets prevail, and without further action, Canadian assembly plants may continue to decline.
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- Legal Challenge Outlook Dim: Supreme Court Justice Ketanji Brown Jackson indicated on CBS that any legal challenge to Trump's recent tariffs would encounter “nuanced legal issues,” suggesting that hopes for refunds are increasingly unlikely due to the complexity involved.
- Market Reaction Swift: On Polymarket, the odds of Trump being forced to refund tariffs plummeted from 39% last week to 28%, reflecting a significant drop in investor confidence regarding the success of any legal challenge and highlighting market uncertainty about future policies.
- Corporate Earnings Outlook Dims: Best Buy (NYSE:BBY) has cut its 2026 guidance, explicitly citing tariff costs as a major factor, and the diminishing possibility of refunds will directly impact its bottom line for the first half of the year, increasing financial pressure on the company.
- GM Faces Rising Costs: General Motors (NYSE:GM), while a domestic company, imports significant components from Mexico, and the continued imposition of tariffs keeps input costs elevated through Q2, adversely affecting the company's overall profitability.
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- Earnings Highlights: Honda Motor reported GAAP EPS of ¥115.53 for the nine months ending December 31, 2025, with revenue of ¥15,975.66 billion reflecting a 2.2% year-over-year decline, indicating resilience amid market fluctuations.
- Sales Forecast Upgrade: American Honda anticipates a 4% increase in vehicle sales for 2026, reflecting a recovery in market demand that could drive future revenue growth and enhance market share.
- EV Prototype Unveiling: Sony Honda Mobility unveiled a new electric vehicle prototype at CES, marking Honda's innovative efforts in the EV sector, aimed at strengthening its competitive position in the rapidly evolving electric vehicle market.
- Rating Upgrade: Analysts have upgraded Honda Motor's rating, signaling increased market confidence in the company's future prospects, which may attract more investor attention and positively impact stock prices.
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- Significant Profit Decline: Honda reported a profit of 465.44 billion yen for the first nine months ending March 31, down 42.2% from 805.26 billion yen last year, indicating severe impacts from weak sales revenue.
- Earnings Per Share Drop: The earnings per share fell to 115.53 yen, compared to 169.69 yen last year, reflecting a notable decrease in the company's profitability.
- Operating Profit Plummets: Operating profit dropped 48.1% to 591.51 billion yen from last year's 1.14 trillion yen, highlighting pressures on cost control and market competition.
- Sales Revenue Forecast Adjustment: While maintaining its full-year profit outlook, Honda raised its sales revenue forecast to 21.10 trillion yen from the previous 20.70 trillion yen, indicating cautious optimism about future market conditions.
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- Earnings Performance: Honda reported earnings of $997.2 million in its fiscal third quarter, translating to a per-share profit of 76 cents, indicating the company's stability and profitability in a competitive market.
- Revenue Growth: The automaker achieved total revenue of $34.69 billion during the quarter, reflecting strong performance in the global automotive market, particularly driven by sustained demand for electric and hybrid vehicles.
- Market Reaction: Despite facing global supply chain challenges, Honda's financial results exceeded market expectations, potentially boosting investor confidence in its future growth prospects.
- Strategic Implications: Honda's profitability and revenue growth provide financial backing for future R&D and market expansion, especially in investments related to electrification and smart driving technologies.
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