How Will Honda Motor (HMC) Stock Be Affected By Latest Airbag Recall?

NEW YORK (TheStreet) -- Shares of Honda Motor Co.  (HMC) are down -1.52% to $35. 09 after the Japanese automaker, as well as Nissan Motor Co.  (NSANY) and Mazda Motor Corp. (MZDAF), said today they are recalling some 3 million additional cars equipped with potentially faulty air bags from parts supplier Takata Corp., bringing the total number of vehicles affected by the bags to nearly 10 million, the Wall Street Journal reports.

Honda is recalling 2 million cars, Nissan is recalling 755,000 vehicles, and Mazda is recalling about 160,000 vehicles.

NIssan shares are down -2.69% to $19.20, and Mazda shares are down -1.86% to $4.75.

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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."

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