Jefferies Deepens SMBC Alliance As Valuation And Dividend Cover Diverge

Jefferies Financial Group is strengthening its alliance with Sumitomo Mitsui Financial Group by nominating Yoshihiro Hyakutome to its Board and working towards a Japan equities joint venture by January 2027. SMBC also plans to increase its stake in Jefferies. While analysts see potential undervaluation, Simply Wall St suggests the shares are above fair value and notes that Jefferies’ dividend is not well covered by free cash flows, a critical factor given its reliance on equity partnerships.

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