Softbank Corp Upside Potential and New Medium Term Plan

Softbank Corp's FY3/26 results and FY3/27 guidance were slightly below consensus but beat internal guidance, leading Goldman Sachs to maintain a Neutral rating with a ¥234 price target. The firm highlights a surprise 10% CAGR profit target in the new medium-term plan and the first dividend hike in seven years.

Key Takeaways

• 1.Softbank Corp announced a new ambitious Medium-Term Plan (MTP) for FY3/27-FY3/31 targeting an operating profit of ¥1,700 bn, representing a +10% CAGR.
• 2.Initial FY3/27 operating profit guidance of ¥1,110 bn is viewed as conservative by analysts, suggesting upside potential due to risk buffers in R&D spending.
• 3.Softbank announced its first dividend hike in seven fiscal years, raising FY3/27 DPS to ¥8.8, with plans to reach ¥10 by FY3/31.

Table of Contents

• FY3/26 earnings
• FY3/27 guidance
• Medium-term plan
• Investment Thesis - Softbank Corp.
• Price Target Risks and Methodology - Softbank Corp.
• Disclosure Appendix
• GS Factor Profile
• M&A Rank
• Quantum
• Disclosures
• Company-specific regulatory disclosures
• Price target and rating history chart(s)
• Target price history table(s)
• Regulatory disclosures

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