SoftBank Analyst Rating Scales To Record Low

SoftBank Analyst Rating Scales To Record Low
  • Sell-side analyst opinion on SoftBank Group Corp SFTBF SFTBY has tumbled to a six-year low as it refrained from new stock buybacks amid continued investment losses.
  • Citigroup cut its rating to Neutral from Buy with a price target of ¥7,400, down from ¥8,000.
  • That dragged the consensus recommendation to a 2016 low, following recent downgrades at Deutsche Bank, CLSA, and Jefferies, Bloomberg reports.
  • "The share buyback hiatus and the business execution issues behind it" led to Citi's reasons for its rating cut. All of which followed risks from higher interest rates and weaker investor communication with Masayoshi Son no longer attending quarterly results briefings, analyst Mitsunobu Tsuruo wrote.
  • Son personally owes Softbank close to $5 billion as mounting losses weigh on the Japanese conglomerate's technology bets.
  • He said his main focus would be on the company's British chip subsidiary Arm after the technology conglomerate posted quarterly investment losses of $10 billion.
  • Price Action: SFTBY shares traded lower by 0.05% at $21.50 on the last check Tuesday.

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