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

  • 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.