This article was originally published on TipRanks.com
Toyota Motor (TM) plans to launch its own automotive software by 2025. Nikkei reports that the new operating system will host advanced operations such as autonomous driving. TM shares jumped 6.92% to close at $199.19 on January 4.
Toyota is a Japanese company that designs, manufactures, and sells passenger and commercial vehicles. It also deals in related parts and accessories. It operates through Automotive, Financial Services, and All Other segments. Toyota’s earnings report for Fiscal Q3 2021 is scheduled for February 09, 2022.
Toyota’s automotive software platform, called Arene, will play a key role in managing electric motors and batteries. It will also support advanced functions such as self-driving, entertainment, and navigation.
The software should help strengthen Toyota’s competitive edge in the industry. Its German rival Volkswagen is already working on its VW.OS operating software, with Daimler also planning to unveil its own Mercedes-Benz OS (MB.OS) by 2024.
Nikkei reports that the Japanese automaker plans to integrate its automotive software into its vehicles by 2025. The long-term plan is to roll out the software in affiliates such as Subaru in the future. Toyota is also reportedly considering making the software available to other automakers and companies working on electric and autonomous cars.
Consensus among analysts is a Moderate Buy based on 1 Buy.
In November, Bank of America Securities analyst Kei Nihonyanagi reiterated a Buy rating on the stock and raised the price target to $218 from $210.70, implying 9.44% upside potential to current levels. According to the analyst, the stock is undervalued and remains an excellent defensive play in an uncertain environment affected by supply-chain issues.
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