Back in April, I wrote about Toyota Motor stock looking interesting after it got battered down by all the safety recalls. Then along comes the euro crisis and pushes the stock down another 5% or so, even though Toyotas earnings for the quarter ending in March were above expectations. Cost cutting largely accounted for the performance.
Earlier this month, S&P Equity Research upgraded Toyota to four stars. They expect to see improved sales and wider operating margins in fiscal 2011. We think the Toyota brand is strong enough to overcome near-term challenges , they conclude.
Disclosure: I do not own Toyota shares (ADR)at this time.