NTT Upgrade: Bullish on Nippon Telegraph and Telephone Corporation

Nippon Telegraph and Telephone Corporation (NTT) is a buy according to a finance expert with experience at Bloomberg. Recent M&As make this a favorable investment opportunity. The prior write-up highlighted amendments to certain legislation in Japan that could impact NTT, leading to a rating upgrade. The expert is bullish on the company now.

Nippon Telegraph and Telephone Corporation (NTT), also known as NTTYY, has been upgraded to a "Buy" rating by a finance expert with experience at Bloomberg. This positive outlook is based on recent mergers and acquisitions (M&As) that enhance the company's competitive position and growth prospects. The expert's analysis, cited in a recent article [1], highlighted key factors contributing to this upgrade.

One significant factor is the recent legislation amendments in Japan that could positively impact NTT. These changes have led to a rating upgrade from "Hold" to "Buy," reflecting the expert's bullish stance on the company's future performance.

NTT has been active in expanding its operations through strategic acquisitions. In early June, the company announced plans to obtain almost two-thirds of the shares in SBI Sumishin, a digital-only bank. This acquisition aims to bolster NTT's fintech capabilities and enhance its customer offerings. The company also plans to deepen connections with customers by combining new banking services with its existing Docomo telecom brand services [1].

Additionally, NTT has been focusing on improving its financial performance. In the fourth quarter of fiscal year 2024 (Q4FY24), the company's wireless ARPU (Average Revenue Per User) rose by 0.5 percent year-over-year, reversing the previous quarter's decline. This improvement, coupled with accelerating subscriber growth, indicates a favorable trend for the company [1].

NTT's recent M&A activities also include the purchase of a 42% equity interest in NTT Data Group Corporation (NTTDF). This acquisition aims to strengthen NTT's IT business and reduce corporate governance-related discounts. The company hosted a press conference in May to discuss this acquisition, further emphasizing its commitment to growth and strategic expansion [1].

In conclusion, the recent M&As and positive legislative changes make Nippon Telegraph and Telephone Corporation a favorable investment opportunity. The company's strategic acquisitions and improved financial performance position it well for future growth, making it a strong consideration for investors and financial professionals.

References:
[1] https://seekingalpha.com/article/4795151-nippon-telegraph-recent-ma-make-this-buy