Citi Raises Softbank Price Target to JPY255 on Profit Growth

Citi analysts raised their price target on Softbank (SFTBY) to JPY255 from JPY240 and maintained a Buy rating. The revision came in a note released Tuesday, citing strong earnings momentum and a medium-term plan that supports continued profit and dividend growth.

Rating Change

• Previous Rating: Buy with a price target of JPY240.
• Current Rating: Buy with a price target of JPY255.

Analyst Rationale

Citi analysts believe Softbank has strong earnings momentum, and its medium-term plan indicates sustained profit and dividend growth. They also argue that the current valuation does not fully reflect future growth potential.

Context

The revision follows a strong performance by Softbank's stock in recent months, driven by improvements in its technology and investment businesses. No immediate comments from other analysts were available, but the stock is currently trading near the new target.

Conclusion

The price target increase reflects Citi's confidence in Softbank's ability to deliver sustainable earnings growth. Investors should monitor the medium-term plan's progress and upcoming quarterly results to assess whether these expectations are met.