Honda Motor Company (HMC) is expanding its business in Asia, growing its global network to increase efficiency and introducing new products to satisfy local markets. However, the economic downturn in the U.S. and Europe continues to negatively affect Honda’s operations, especially the Power Products and Other business.
Moreover, Honda’s global position is threatened by unfavorable currency exchange rates, flat-to-lower sales in its key markets and increased competition.
Therefore, we are downgrading our recommendation on the stock from Outperform to Underperform with a target price of $28.Zacks Investment Research
