Yamaha Motor Co. Smokin' Hot

[PapaUtah]

Yamaha global motorcycle sales expanded 28% YoY on a volume basis and 31% in value terms in Q1. Yamaha is leading percentage sales gainer and had the largest market share increase of any manufacturer in U.S. Outlook for ’06 continues to be rosy. Share price up 77.5% in previous 12 months. Up 341% in the past 36 months. Indonesia is the big risk for Yamaha.

Looks like the imports are starting to take a bite out of HDI's hide. HDI was up for the quarter but behind the industry. More share going to Honda/Kawasaki/Suzuki and Yamaha. Perhaps the Stars/Boulevards/VTXs/etc. are starting to get a foothold. Could we be looking at a repeat of what Toyota/Honda did to GM and Ford in the auto business?

More news as it appears...

 

[OrangevaleFJR]

in a word: yes. It is a matter of time before the new riders learn enough to begin buying based on value.

 

[madmike2]

Also, the HDI practice of "holding" bikes that were reported as sold to dealers has been called into question. It hurt their stock and it looks as if it has hurt their report of "vehicles sold", too.

 

[PapaUtah]

Two more analysts are raising targets and multiples for Yamaha Motor. Comments include:

This growth was driven by Yamaha’s greater number of high-priced models compared with its peers. Strong growth has continued in April and we think it is significant that the greatest source of concern has thus been swept away.

We raise our target price for Yamaha to ¥4,100 from ¥3,300. Our expected total return is 29.9% and we therefore upgrade our rating to Buy/Medium Risk (1M) from Hold/Medium Risk (2M).

...On a retail basis, Yamaha’s motorcycle unit sales in Indonesia jumped 32% YoY to 296,000 units...

That's a whole lot of motorcycles...