Fubotv earnings beat by $0.10, revenue topped estimates
Investing.com - Jefferies has upgraded Rakuten Bank Ltd (TYO:5838) from Hold to Buy and raised its price target to JPY9,500.00 from JPY7,600.00, citing benefits from potential Bank of Japan rate increases.
The upgrade follows what Jefferies described as a "good overall" first quarter performance, during which Rakuten Bank shares rose approximately 8.5% compared to the TOPIX index’s 0.7% gain.
Jefferies rolled forward its valuation base year to FY3/27 from FY3/26 and incorporated an expected base rate increase in the fourth quarter (January-March) of FY3/26.
The research firm noted that Rakuten Bank would see "almost immediate impact" from any Bank of Japan rate rise, typically within two to three months, due to its loan and asset portfolio of monetary claims and investment loans.
The new price target of JPY9,500 represents a 33% potential upside from current levels, according to Jefferies’ analysis based on the re-pricing of rates and subsequent roll-over effects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.