0710 GMT - Honda Motor's reassessment of its electrification strategy raises concerns around the Japanese automaker's long-term technological relevance given a decarbonizing market, says Morningstar's Vincent Sun in a note. The company is effectively retreating to its core hybrid-technology competency, likely to protect profitability amid U.S. tariffs, he says. The strategy shift is likely to result in an estimated 270 billion-570 billion yen FY 2026 operating loss, Sun adds, a massive swing from a previous guidance of 550 billion yen operating profit. The expected equity-method loss also underscores Honda's struggle in China, he adds. Morningstar cuts its fair-value estimates on Honda's shares to 1,550 yen from 1,720 yen, and on its ADRs to $32.00 from $36.00. Tokyo-listed shares closed at 1,368 yen while ADRs ended at $26.09. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

March 13, 2026 03:10 ET (07:10 GMT)

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