On Friday, Jefferies maintained a Hold rating on Rakuten Inc. (4755:JP) (OTC: RKUNF) but increased the shares target to JPY900 from JPY730. The adjustment reflects the firm's anticipation of Rakuten's upcoming second-quarter earnings report, where several key business updates are expected.
The firm is particularly interested in Rakuten's mobile business, including average revenue per user (ARPU), subscriber outlook, and the status of its Platinum Band. Additionally, the firm will be looking for growth measures and operating profit margin (OPM) from Rakuten's domestic gross merchandise volume (GMV) and its Internet Service segment.
Jefferies will also be monitoring for any new developments in the Fintech segments during the second half of the year. Updates on the company's debt situation are another area of focus for the firm as it assesses Rakuten's financial health.
The price target uplift to JPY900 from the previous JPY730 comes as Jefferies aims to capture the potential impacts of these anticipated updates on Rakuten's financial performance. The Hold rating remains unchanged, suggesting that the firm advises investors to maintain their current position in the stock until more definitive results are observed from the upcoming earnings and business developments.
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