Beamr video compression achieves up to 50% improvement for AVs
Investing.com - Nomura/Instinet upgraded Rakuten Inc. (4755:JP) (OTC:RKUNF) from Neutral to Buy and raised its price target to JPY1,085.00 from JPY902.00 on Tuesday.
The upgrade reflects Nomura’s increased confidence that Rakuten Mobile’s service revenues will align with medium-term expectations. The firm shifted its valuation base year for Rakuten Group from December 2027 to December 2028, incorporating expected EBITDA growth in the mobile segment into the new target price.
Nomura noted Rakuten’s improved financial risk management, highlighting the company’s increased internally generated funding and retail bond redemptions in the first half of 2025, followed by new retail bond issuance in August 2025.
The research firm also significantly revised its valuation of Rakuten’s shareholdings in AST SpaceMobile, now estimating their market value at ¥203.0 billion, up from a previous estimate of ¥106.9 billion.
Nomura identified the pace of sales growth in Rakuten’s mobile service segment as a key focus going forward, while noting potential risks related to the company’s roaming service contract with KDDI, which is expected to be renewed in September 2026.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.