Jefferies downgraded SoftBank Group (SFTBY) to Hold from Buy with a price target of $32.20, up from $31.50. SoftBank’s $100B-$200B U.S. investment pledge over four years raises concerns about funding sources and impact on its stock, the analyst tells investors in a research note. The firm says the spending may hinder SoftBank’s ability to conduct share buybacks, widening the gap between its stock price and net asset value. Jefferies does not see investors “lining up to invest in another vision fund” alongside SoftBank.
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