Morningstar - Sumitomo Mitsui Trust Holdings Inc. (8309) Renewed Focus on Wealth Management Will Lower the Cost of Equity for SMTH; Shares Fairly Valued

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Morningstar

Mari Kumagai

EUR 101.80 For Business Accounts Only

Renewed Focus on Wealth Management Will Lower the Cost of Equity for SMTH; Shares Fairly Valued

We increase our fair value estimate for Sumitomo Mitsui Trust Holdings, or SMTH, to JPY 4,600 per share from JPY 4,000 per share as we reduce our cost of equity assumption. Fundamentally, we believe asset-management businesses are less risky, and we welcome management's recent decision to curve out the asset-management functions into an integrated entity to better focus on the business.
The recent rally indicates the reversal of past underperformance against the TOPIX bank index up to negative ...

02/02/2018 13 EN

Underlying

Sumitomo Mitsui Trust Holdings Inc.

Sumitomo Mitsui Trust Holdings is a holding company engaged in the management of Sumitomo Mitsui Trust Group Companies. Co.'s main business activities are banking, asset management and administration, and real estate. Co.'s banking business offers retail banking services throughout Japan; wholesale banking services to corporate clients; and marketable financial products for investment and risk management needs Co.'s asset management and administration business provides various products including pension plan for institutional investors and investment trusts primarily for individual clients. Co.'s real estate business offers a full line of real estate related transaction services.

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JP3892100003 Japan

Provider

Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

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Analysts

Mari Kumagai

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Renewed Focus on Wealth Management Will Lower the Cost of Equity for SMTH; Shares Fairly Valued

SUMITOMO MITSUI loses on its star level and is downgraded to Slightly Positive

Monthly LMI Update Independent Investment Research

Feasibility Study Results in December to be a Catalyst for this Junior

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Sasol Provides Full-Year Production Update

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

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