Rakuten (4755) Earnings: 2Q Internet Services Segment Profit Surpasses Estimates

Rakuten on Smartkarma

Analysts on Smartkarma have been closely covering Rakuten, the Japanese e-commerce giant. Leonard Law, CFA, in his Morning Views Asia report, provided fundamental credit analysis and trade recommendations on Rakuten, expressing a bullish sentiment. Similarly, David Blennerhassett suggested buying Rakuten on dips if one can tolerate owning its mobile business, cautioning against short-term investment in Rakuten Group but advocating for Rakuten Bank on larger downturns. Travis Lundy‘s analysis delves deeper into Rakuten‘s financial strategies, highlighting a proposal to combine its fintech businesses, creating complexities but potentially resulting in a win-win for stakeholders.

Travis Lundy also discussed Rakuten‘s plan to issue “Bond-Type Shares,” a unique move aimed at strengthening the company’s financial base by reducing debt through equity-related financings. This unconventional approach, akin to an annuity, offers potential benefits if executed correctly. Overall, the analyst sentiment towards Rakuten on Smartkarma is optimistic, with a focus on the company’s strategic moves and financial positioning.

A look at Rakuten Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Analysts on Smartkarma have conducted a comprehensive evaluation of Rakuten Group, Inc.’s long-term prospects based on the Smart Scores system. With a blend of scores across different categories, Rakuten seems to have a mixed outlook. The company scores well in terms of resilience, reflecting its ability to weather potential storms in the market. This signifies a positive sign for investors looking for stability. However, Rakuten lags in the dividend category, indicating a lower potential for income generation for shareholders. Growth prospects also seem average, suggesting a moderate trajectory for expansion in the future.

Overall, while Rakuten does not score exceptionally high in any single category based on Smart Scores, its strong resilience score could imply a steady performance over the long term. Investors may find Rakuten an attractive option for a diversified portfolio given its blended scores. It’s important for investors to consider their risk tolerance and investment goals when analyzing Rakuten‘s outlook based on the Smart Scores provided.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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