Analyst Mikio Hirakawa from Bank of America Securities maintained a Buy rating on Sony (SNEJF – Research Report) and keeping the price target at Yen4,500.00.
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Mikio Hirakawa has given his Buy rating due to a combination of factors including Sony’s strategic financial initiatives and projected growth in profitability. The company has set an ambitious target to increase its adjusted net profit from ¥120 billion to ¥125 billion by FY3/27, with a focus on improving the return on equity for Sony Financial Group to 10% or more, up from 5.5% in FY3/25. This growth is expected to be driven by Sony Life’s profit expansion, particularly through the sale of USD-denominated bonds and reduction of repurchase costs.
Additionally, Sony is implementing measures to strengthen its financial position, such as adjusting its product mix to enhance asset-liability matching and ceding a block of existing USD-denominated whole-life insurance. These efforts are complemented by a planned ¥100 billion share buyback by FY3/27, aimed at addressing the supply and demand dynamics of Sony Financial Group shares post-spin-off. These strategic moves are anticipated to bolster Sony’s financial health and enhance shareholder value, justifying the Buy rating.
According to TipRanks, Hirakawa is a 4-star analyst with an average return of 27.7% and an 84.62% success rate.
In another report released yesterday, Jefferies also reiterated a Buy rating on the stock with a Yen4,910.00 price target.
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