While the term FANG specifically refers to four big U.S. technology stocks – Facebook Inc. (FB), Amazon.com Inc. (AMZN), Netflix Inc. (NFLX) and Google, a subsidiary of Alphabet Inc. (GOOGL) – analysts and investors say another big technology firm is emerging that has significant upside as the Big Four FANG stocks become pricey. The company is Japan's SoftBank Group Corp. (SFTBF), whose stock has surged more than 30% year-to-date, Google Finance data shows. (For more, see also: Slumping FANG Stocks Losing Their Luster.)

Sharp Gains

Since February 2016, when SoftBank's stock fell below $40, the company's shares have surged more than 100%, closing at $87.75 on October 18, additional Google Finance data reveals. SoftBank's stock has outperformed most FANG stocks – with the exception of Netflix – since early last year, according to Barron's

Significant Upside

The company's shares could enjoy strong upside going forward, according to more than one analyst whose input appeared in Barron's. Jefferies Group LLC (JEF) analyst Atul Goyal has provided a 12-month price target of 14,100 yen (roughly $125), which represents a more than 40% premium over the stock's current price. 

Discount 'Too Deep To Ignore'

Goyal emphasized that SoftBank has been trading at a sharp discount to its net asset value (NAV), excluding unlisted entities and minus net debts. On October 14, Barron's reported Goyal as stating that the bank was trading at a 52% discount to this NAV. This discount is "too deep to ignore," he said. "If one adds the value for its investments in unlisted entities, the NAV will be even higher," he added. (For more, see also: 4 Undervalued Stocks in a Frothy Market.) 

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