Sumitomo Mitsui Financial: Consider Both Organic And Inorganic Prospects (Rating Downgrade)

The Value Pendulum
Investing Group Leader
(7min)

Summary

  • I am downgrading Sumitomo Mitsui Financial from Buy to Hold, following an evaluation of its organic growth outlook and inorganic expansion initiatives.
  • The prospects for SMFNF existing operations are unfavorable; its weaker-than-expected earnings and guidance are reflective of headwinds resulting from the trade war.
  • But Sumitomo Mitsui has made smart moves like the SoftBank partnership and the Yes Bank investment to enhance its long-term potential.
  • Looking for more investing ideas like this one? Get them exclusively at Asia Value & Moat Stocks. Learn More »

Customer entering the branch office of SMBC bank in Kyoto, Japan.

yujie chen/iStock Editorial via Getty Images

I have become Neutral on Sumitomo Mitsui Financial (NYSE:SMFG) (OTCPK:SMFNF) (8316.T) or "SMF".

My earlier February 11, 2025 article discussed SMF's corporate reorganization moves and the effects of rate tailwinds.

SMF's rating is

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This article was written by

The Value Pendulum
12.78K Followers

The Value Pendulum is an Asian equity market specialist with over a decade of experience on both the buy and sell sides.

He is the author of the investing group Asia Value & Moat Stocks, providing ideas for value investors seeking investment opportunities listed in Asia, with a particular focus on the Hong Kong market. He hunts for deep value balance sheet bargains and wide moat stocks and provides a range of watch lists with monthly updates within his investing group.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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