The Zhitong Finance App learned that several Wall Street investment banks downgraded the company's ratings because Japanese tech giant SoftBank Group (SFTBY.US) refused to carry out new stock repurchases while investments continued to lose money. Among them, the stock fell 2.6% on Tuesday after Citibank analysts downgraded SoftBank Group's rating from “buy” to “neutral.” Earlier, investment banks such as Deutsche Bank, Lyon Securities, and Jefferies also downgraded SoftBank Group's ratings. Today, SoftBank's general market rating has fallen to a six-year low.
Citigroup analyst Mitsunobu Tsuruo wrote in a report that the main reason for the bank's downgrade was “the interruption of SoftBank Group's stock repurchase and the business execution issues behind it,” followed by the risk posed by rising interest rates, and the weakening of communication between the company and investors due to Sun Zhengyi's announcement that he would no longer attend performance conferences.
According to information, SoftBank Group's stock price fell more than 15% from its high earlier this month, after the company announced another quarterly loss in its Core Vision Fund division and declined to announce further stock repurchases.
