SoftBank Wants to Get Onboard Uber and Lyft
SoftBank (9984.JP) CEO Masayoshi Son has indicated that he's keen on investing in Uber and Lyft to gain access to the U.S. ride hailing market after making similar investments in Asia, the Wall Street Journal reports.
Son also said that he's close to inking a deal involving subsidiary Sprint Corp (S) that would trigger consolidation of the U.S. telecom industry.
SoftBank and Sprint are brokering
SoftBank already has a sizeable stake in Asia's three largest ride-hailing companies: Singapore's GrabTaxi, India's Ola and China's Didi Chuxing.
Son's announcements came on the back of SoftBank's June quarter earnings announcement. The company announced a 17% increase in operating profit compared to a year ago on the back of a 3% rise in revenues. Jefferies' Atul Goyal has a buy rating on SoftBank with a JPY13,800 a share target price, which implies 55% upside.
The main reason we like Softbank are twofold (1) Deep discount to NAV of ¥14K + / share as the stock trades at c. ¥9K and (2) as we approach the era of AI / IoT, Softbank with its investments is probably the best positioned group to benefit from the innovations and advances in this space for the next 10 years. This is not so much of a
SoftBank shares are up 15% this year.