SoftBank hits new 20-year high as Uber gains and DoorDash plans IPO
SoftBank Group Corp rose to a fresh 20-year high as the recent stock market surge boosted the value of holdings like Uber Technologies Inc. and brightened the prospects for portfolio companies going public.
The US ride-hailing pioneer recovered from stumbles after its initial public offering last year and its shares have gained more than 70 per cent this year. Softbank’s 13 per cent stake is worth about $11 billion. The Japanese company is also a major shareholder in US delivery giant DoorDash Inc, which filed to go public this month. SoftBank’s stock gained 2.3 per cent to 7,250 yen on Friday, the highest level since March of 2000 in the midst of the dot-com boom.
Citigroup earlier this week raised its target price on SoftBank to 11,000 yen from 10,200 yen, citing improved earnings prospects at the Tokyo-based company’s investments business. Nomura Holdings raised its target to 9,100 yen from 8,190 yen citing the same reason. Both brokerages have a buy rating on SoftBank.