Sumitomo Mitsui Financial

SMFG

Market cap $138B

I'm sticking with a 'Buy' rating for Sumitomo Mitsui Financial Group following my assessment of its valuations and prospects. SMFG revealed its updated mid-teens ROE goal for the long run; I think this is achievable with cost-cutting moves and domestic rate hikes. The stock's current P/B of around 1.3x is undemanding, considering the significant discount to its U.S. peers.

Bloomberg's Katherine Doherty reacts to the reports about Japanese bank Sumitomo Mitsui Financial Group potentially taking over Jefferies Financial Group. While there have been denials of any immediate takeover plans, SMFG has been gradually increasing its stake in Jefferies, currently disclosed at around 20%.

Shares of Jefferies Financial Group surged on Tuesday after reports suggested Japan's Sumitomo Mitsui Financial Group (SMFG) is exploring a potential takeover of the US investment bank, even as conflicting signals emerged over the likelihood of a deal. Takeover report lifts Jefferies shares Jefferies stock rose as much as 14% in premarket trading following a report by the Financial Times that SMFG is working on plans for a possible acquisition.

Shares of Jefferies Group (NYSE:JEF) rose on Tuesday after reports that Japan's Sumitomo Mitsui Financial Group is preparing plans for a possible takeover of the US investment bank. Jefferies has indicated it is not interested in selling, CNBC reported Tuesday morning.

According to the Financial Times, SMFG, Japan's second-largest lender, has explored plans to position itself for a potential takeover of Jefferies if market conditions create an opportunity, according to people familiar with the matter.

Jefferies Financial stock surged early Tuesday on reports that Japan-based Sumitomo Mitsui Financial (SMFG) is preparing for a potential buyout of the U.S. investment bank. The news comes ahead of Jefferies' earnings report late Wednesday.

Shares rose 9.2% premarket after a report said that Japan's second-largest lender was preparing a takeover bid for the investment bank.

The potential move is a key part of the Tokyo-headquartered group's intention to increase competition with Wall Street's top investment banks, according to the FT

Jefferies stock has fallen 36% this year and SMFG stands ready to act if the falling share price presents an opportunity, according to a report.

efferies (JEF.N), opens new tab shares surged 10% in premarket trading on Tuesday after the Financial Times reported that Japan's Sumitomo Mitsui Financial Group (8316.T), opens new tab is working on plans for a ​possible takeover of the U.S. investment bank.