Toyota stock surges 9% after report says the carmaker aims to double profitability

Tokyo: So, Toyota’s stock just shot up by 9%! It hit an intraday high of $197.44, and folks are buzzing about it. This jump came after a report from Nikkei, which said the company is aiming to double its return on equity target to 20%. That’s a big deal, especially since the market was expecting only 11% for the year ending in March.

It’s been a bit of a rollercoaster for Toyota lately. The stock had been struggling, especially after hitting a peak earlier this year. But now, with this news, investors are feeling optimistic again. The shares have gained over 8% this year, but they still lag behind the S&P 500’s impressive 26% rise.

The company has faced some challenges, like slowing demand and tariff risks, which have affected its production. But with this new plan, it seems like they’re trying to turn things around. Other automakers are also making moves, with Honda and Nissan’s stocks rising due to merger talks. If that merger happens, it could shake up the industry even more.

Overall, it looks like Toyota is gearing up for a comeback, and investors are definitely taking notice!