Analyst Note
| David Whiston, CFA, CPA, CFE |Honda’s fiscal 2021 second quarter followed a pattern we’ve seen in our automaker earnings of excellent year-over-year cost reductions yielding strong earnings despite the pandemic. We are raising our fair value estimates for Honda to $34 and JPY 3,500. The change is from better fiscal 2021 results than previously modeled in light of a faster-than-expected recovery from the pandemic, higher equity income over our five-year forecast period, and the time value of money.