Softbank Corp (9434): Cloud and AI drive high growth

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Softbank Corp (9434): Cloud and AI drive high growth

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Softbank Corp (9434)

Cloud and AI drive high growth

Reinstating Coverage: BUY | PO: 260 JPY | Price: 210 JPY

Reinstate at Buy, price objective of ¥260 06 July 2026

We reinstate coverage of Softbank Corp with a Buy rating and PO of ¥260. The ¥260 Equity

price objective is derived from the sum of (1) enterprise value calculated by applying our

FY3/28E EV/EBITDA multiple of 9.4x to the company’s businesses excluding listed HideakiResearchTanakaAnalyst >>

subsidiaries, and (2) the equity value of its two listed subsidiaries (Implied Total BofAS Japan

EV/EBITDA: 7.8x). The key investment points underpinning our Buy rating are: (1) even +81hideaki.tanaka@bofa.com3 6225 8431

excluding listed subsidiaries, the company retains relatively strong growth prospects, led Hiromu Yabuki >>

by enterprise; and (2) given these growth expectations, we see relatively large upside Research Analyst

BofAS Japan

potential in the share price. hiromu.yabuki@bofa.com

Enterprise: expectations for cloud and AI

In enterprise, we expect cloud and AI—where the company targets doubling revenue over

Stock Datafive years (CAGR 15%)—to drive performance. We see upside in AI computing

infrastructure and security (breakdown undisclosed; further disclosure anticipated). For Price 210 JPY

AI computing infrastructure, external sales are expected to begin at new data centers Price Objective 260 JPY

(Tomakomai and Sakai), which will be a key focus. In security, the “Patching as a Date Established 6-Jul-2026

Service” offering launched in June is noteworthy. By combining OpenAI’s technology Investment Opinion B-1-7

with the company’s operational expertise, it offers an end-to-end solution from 52-Week Range 203-248 JPY