SoftBank(US:SOBKY) Zhi Tong Cai Jing·2025-08-20 01:15Core Viewpoint - SoftBank's stock price has surged significantly, but short-term upside may be limited due to concerns over a potential correction after a 135% increase in four months [1][5]. Group 1: Stock Performance - On Monday, SoftBank's stock price soared by over 7 trillion yen (approximately $47 billion), reaching a historical high [1]. - The current stock price has reached the highest premium over analysts' target prices since 2010, indicating a potential weakening of upward momentum [3]. Group 2: Market Sentiment and Investor Behavior - The recent surge in SoftBank's stock is largely driven by market sentiment rather than fundamental support, with some investors buying shares to increase their weight in the Nikkei 225 index, which also hit a new high this week [5]. - There are clear signs of profit-taking among investors, as evidenced by the stock's inability to maintain its strong performance on Tuesday [1]. Group 3: Technical Indicators and Valuation - Technical signals suggest that the stock may have reached a short-term peak, with the 14-day Relative Strength Index (RSI) hitting 90, well above the overbought threshold of 70 [1]. - From a valuation perspective, SoftBank's current stock price is trading at a 30% discount to its net asset value, which, although improved from a 48% discount in late July, indicates a decline in short-term attractiveness [7].