Sosei Group upgraded to Buy from Hold at Jefferies

Jefferies upgraded Sosei Group to Buy from Hold with a price target of 1,700 yen, up from 1,600 yen. The analyst had cited dilution from the company’s equity raise for a downgrade yesterday, but now says Sosei’s equity raise will incur less dilution than the firm had anticipated. Issuing 7.1M new shares raises shares outstanding by only 8.6%, and because funds raised from the new CB will be used to replace an older CB, the firm estimates potential net new dilution of only 5.5%, the analyst tells investors, noting that the firm’s revised price target reflects potential upside of 22% from Wednesday’s close.