Toyota market capitalization passes Wal-Mart as shares rise

Reuters
Automotive News / February 17, 2006 - 10:00 am

TOKYO -- Shares in Toyota Motor Corp. hit a record high on Friday, sending the automaker's market value above $200 billion -- more than that of U.S. retail giant Wal-Mart Stores -- and analysts said the issue could keep rising as profits look to grow even faster next year.

Climbing for the fourth session in five days, shares in Japan's top carmaker touched an all-time peak of $55.28 (6,560 yen) in early trade, putting its market capitalization -- a measure of how much investors believe a company is worth -- at $200.7 billion at current exchange rates.

"With the broader market and start-ups suffering right now, there's a flight to quality, and institutional and retail investors alike are looking for large-cap, blue-chip stocks that they feel are safe," he added.

With an arsenal of popular cars and a lean cost structure, Toyota has long dwarfed rival automakers in terms of market capitalization. By this yardstick it is now worth more than double the combined value of DaimlerChrysler AG, General Motors and Ford Motor Co.

"Interest in Toyota is high, and we think there's plenty of upside for the shares," Deutsche Securities analyst Tsuyoshi Mochimaru wrote in a report last week. Mochimaru has a "Buy" rating on Toyota, with a 12-month target price of 7,200 yen.
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