Japan Carmakers Will Recover Fast With Honda a Buy, Goldman Says
- Pandemic is ‘similar but different’ from the financial crisis
- Honda upgraded to buy, while Nissan still faces challenges
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The coronavirus outbreak will reduce Japanese automakers’ combined operating profit by 38% this fiscal year, but the manufacturers may rebound faster than they did after the global financial crisis more than a decade ago, analysts at Goldman Sachs Group Inc. said.
Demand could “recover relatively quickly” once the pandemic nears an end, Kota Yuzawa and other analysts wrote in a report. Honda Motor Co. was upgraded to a buy rating, from a hold, by the bank, which said its valuation was attractive after a share decline of about 25% this year.