NEW YORK (TheStreet) -- Shares of Honda Motor Co., Inc. (HMC) are lower in after-hours trading after it was reported that the automaker is expected to recall over 1 million more vehicles with potentially defective air bags, expanding a massive, multi-company air bag recall, sources told Reuters late today.
The recall involves faulty air bag inflators supplied by Takata Corp and would follow a similar move this week by Toyota Motor Corp. (TM).
The Honda recall should be announced by the end of June, sources added.
TheStreet Ratings team rates HONDA MOTOR CO LTD as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate HONDA MOTOR CO LTD (HMC) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: