Atul Goyal, an analyst from Jefferies, maintained the Buy rating on Sony. The associated price target was lowered to Yen4,820.00.
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Atul Goyal has given his Buy rating due to a combination of factors that highlight Sony’s potential for growth and value creation. He anticipates a 10% operational profit growth by fiscal year 2026, excluding financials, despite challenges such as tariff impacts on PlayStation 5 hardware and Electronics, Technology & Services margins. This growth is expected to be driven by robust performance in Sony’s Music and Games subscription services.
Looking further ahead, Goyal projects a 13% operational profit increase by fiscal year 2027, largely fueled by an estimated 30% growth in games operational profit with the anticipated launch of Grand Theft Auto 6. Additionally, the potential spin-off of Sony’s Sensors division could enhance the company’s price-to-earnings ratio by 20-30%, thereby unlocking significant shareholder value. Without this spin-off, however, Sony may face more challenging comparisons from fiscal year 2028 onwards. Therefore, Goyal maintains a Buy rating with a price target of ¥4,820.
Goyal covers the Communication Services sector, focusing on stocks such as Nintendo Co, Capcom Co, and NEXON Co. According to TipRanks, Goyal has an average return of 14.1% and a 68.82% success rate on recommended stocks.
In another report released on July 24, TR | OpenAI – 4o also upgraded the stock to a Buy with a Yen4,161.00 price target.