Nissan Motor Company (NSANY) manufactures and sells about 3.5 million cars and commercial vehicles annually in more than 190 countries. The company’s major production sites are located in Japan, with additional facilities located in the U.S. and elsewhere. Some of its key brands include Altima, Sentra, Maxima, Quest, Pathfinder, Xterra, Frontier, Titan, and its luxury brand, Infiniti.

Increasing prices of energy and raw material including steel, aluminum and precious metal are eroding profits of Nissan. Moreover, the company is offering higher incentives to entice buyers. This is making it difficult for Nissan to pass on rising raw material and energy prices to the ultimate consumers.

In addition, there are concerns about the new product launch costs that the company is planning. Also, the overall automotive industry environment is a challenging one, with volumes going down.

The company anticipates a 29.5% drop in earnings for fiscal 2008. Thus, we rate the stock a Sell with a target price of $11.50.

Read the full analyst report on NSANY.

“NSANY” Free Stock Analysis: Buy? Sell? Hold?
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