In a report released today, Shinichiro Nakamura from Bank of America Securities maintained a Buy rating on Sumitomo Mitsui Financial Group, with a price target of Yen4,700.00.
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Shinichiro Nakamura has given his Buy rating due to a combination of factors that highlight Sumitomo Mitsui Financial Group’s strategic initiatives and financial outlook. The company has set a long-term return on equity (ROE) target of 12%, which aligns with its ambition to match and eventually surpass the ROE levels of other major banks by the fiscal year ending March 2029. This target is supported by improved profitability in global operations and strategic moves such as mergers and acquisitions, as well as reductions in low-return risk-weighted assets.
Additionally, the company’s guidance for net profit growth is built on a solid base, with expectations for continued strength in its wholesale and retail segments, alongside monitored improvements in its global business. The capital policy for the upcoming medium-term plan emphasizes a balanced approach between shareholder returns and capital allocation, with a focus on maintaining a healthy CET1 ratio. These strategic directions and financial targets contribute to the positive outlook and justify the Buy rating.
In another report released on November 15, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a Yen4,959.00 price target.