SMFG - Sumitomo Mitsui: Multiple Positives

2024-05-17 04:14:49 ET

Summary

• Sumitomo Mitsui's latest fiscal year net income and its forward-looking earnings guidance were both better than what the analysts had expected.
• SMFG has the potential to command a higher P/B multiple, considering its favorable dividend guidance, the new JPY100 billion buyback plan, and the proposed stock split.
• The multiple positives for Sumitomo Mitsui suggest that a favorable re-rating of the stock's valuation in the future is highly probable.

Elevator Pitch

I continue to award a Buy rating to Sumitomo Mitsui Financial Group, Inc. ( SMFG ) [8316:JP] stock. The potential for growth in SMFG's net interest income and asset management fees was the subject of my earlier February 25, 2024 write-up ....

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