Atul Goyal, an analyst from Jefferies, maintained the Hold rating on SoftBank Group (SFTBF – Research Report). The associated price target was raised to Yen10,050.00.
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Atul Goyal has given his Hold rating due to a combination of factors impacting SoftBank Group’s financial standing. The company reported a significant net loss in the third quarter, primarily due to investment losses from its Vision Funds 1 and 2. Despite a substantial total investment, these funds have not delivered expected returns, resulting in a cumulative loss.
Additionally, SoftBank’s net debt to equity ratio is relatively high, indicating financial leverage concerns. The company plans to employ project financing to fulfill its investment commitments, but there is no clear indication of stock buyback plans, which could continue to affect the stock’s discount to net asset value. Given these considerations, the price target is maintained at ¥10,050, justifying the Hold rating.
In another report released on February 2, Citi also maintained a Hold rating on the stock with a Yen10,000.00 price target.