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FISCO news service of Japan reports that UBS AG (UBS) started coverage of Japan's Big-3 Auto with a "buy" rating on Nissan (OTCPK:NSANY), Honda (HMC), and Toyota (TM). Details behind its ratings for Honda and Toyota weren't provided. Regarding Nissan however, UBS said in its report that it saw weakness continuing until the end of Q3 from which it expects Nissan to begin a dramatic reversal in Q4.

UBS forecasts a 13% y-o-y increase in Nissan's full-year (ending March 2007) operating income. And it set Nissan's target share price at 1,400 yen ($24.04 equivalent for its ADRs).

FISCO also noted that for the first time in 7-years, Nissan's figures for (1) domestic production, (2) domestic sales, (3) overseas production, and (4) exports, were all minus for the first six-months of the year. The reason for this predicament has been accounted for by Nissan management and Ghosn and company, as well as UBS, clearly believe Nissan will turn things around this fall when it introduces 8 all-new models globally.

Related:

Nissan Salvages Q1, All Eyes on 2H

Nissan Motor Co (OTCPK:NSANY), Toyota Motor Corp (TM), and Honda Motor Co (HMC) 1-year chart:

Source: UBS Starts Japan's Big-3 Auto at "Buy"