GMO Internet Inc. rose in Tokyo trading after Barclays Plc recommended buying the shares as a bet that growth in use of social-media networks and smartphones in Japan will boost profit.
The Internet-related services provider jumped 3 percent to 1,008 yen as of the close, compared with a 3.4 percent decline in the broader Topix. The Tokyo-based company earlier rose by as much as 9.2 percent, the biggest increase since April 22.
GMO Internet, which also provides online securities and foreign-exchange trading services, introduced a soccer game with real names and images of top players from around the world last month that can be played on smartphones. Barclays raised its rating to “overweight,” the equivalent of buy, from “equal weight,” citing a steady increase in games revenue.
The “next catalyst is a profit in the games business: The most likely source of income change is reaching a profit in the games (social and smartphone) business,” wrote Keiichi Yoneshima and Kenji Wakasa, analysts at Barclays in Tokyo, in a note to clients dated May 31.
GMO Internet forecasts a 6.2 percent gain in net income to 4.8 billion yen ($48 million) this year, as sales climb 12 percent to 83 billion yen, the Tokyo-based company said May 7.