The U.S. ride-hailing pioneer recovered from stumbles after its initial public offering last year and its shares have gained more than 70% this year. Softbank’s 13% stake is worth about $11 billion. The Japanese company is also a major shareholder in U.S. delivery giant DoorDash Inc., which filed to go public this month. SoftBank’s stock gained 2.3% to 7,250 yen on Friday, the highest level since March of 2000 in the midst of the dot-com boom.
Citigroup Inc. 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 Inc. raised its target to 9,100 yen from 8,190 yen citing the same reason. Both brokerages have a buy rating on SoftBank.
A series of missteps in the investment business including a failed WeWork IPO and the impact of the Covid-19 outbreak led to record losses last fiscal year. SoftBank founder Masayoshi Son responded by unveiling plans to sell 4.5 trillion yen ($43 billion) in assets and buy back a record 2.5 trillion yen of his own stock. Shares are up more than 160% from their March low.