It’s time to buy Toyota shares – analyst says

Shares of Toyota Motor Corp (LON: TYT) have performed incredibly well since the start of this year and they’ll continue on that trajectory over the next twelve months, says a Goldman Sachs analyst.

Toyota stock has another 15% upside

On Monday, Kota Yuzawa recommended that investors build a position in the automotive stock as it still has another 15% upside.

The analyst likes Toyota shares here as he’s convinced that the multinational will quickly expand its footprint in electric vehicles moving forward.

We see Toyota as one of the few automakers globally capable of constructing a vertically integrated model for electric vehicles, including batteries and vehicle energy efficiency technology.

Toyota Motor Corp is committed to increasing its EV sales to 3.5 million by the end of this decade. Rival Tesla sold 1.3 million in 2022.

Toyota will expand share in electric vehicles

The Japanese company lacks a significant share in electric vehicles (globally) at present.

But Yuzawa is bullish on Toyota stock as he expects the automaker to own just over 10% of the global EV market in 2030. His research note reads:

We think this strategy is grounded on Toyota’s robust finances and ability to exercise control over its supply chain, thanks to vertical integration.

Earlier this year, the Aichi-headquartered multinational car manufacturer said it was aiming for 620 miles of driving range on its new lineup of fully electric vehicles to launch in 2026 (read more). It’s committed to lowering costs of EVs as well.