Sony Group Corporation (SONY) Recommended as a Buy Due to Strong Operating Profit Growth and Share Buyback Initiative
Written by Emily J. Thompson, Senior Investment Analyst
Source: Yahoo Finance
Updated: 2 hour ago
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Source: Yahoo Finance
Sony's Stock Performance: Sony Group Corporation (NYSE:SONY) has a consensus Moderate Buy rating, with recent analyst recommendations raising the price target to $34.75 following strong second-quarter results, including a 10% year-over-year increase in operating profit.
Financial Growth and Projections: The company reported a revenue of $20.14 billion for the quarter and expects an 8% increase in full-year operating profit, driven by its imaging and sensing solutions and music segment.
Augmented Reality Contributions: Sony is recognized as an enabler in augmented reality, developing technologies like Micro-OLED displays and imaging hardware for AR/VR applications, while also joining the AR Alliance to enhance its commitment to the ecosystem.
Investment Considerations: Despite Sony's potential, some analysts suggest that certain AI stocks may offer better upside potential and lower risk, indicating a competitive landscape for investors looking at technology stocks.
SONY.N$0.0000%Past 6 months

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Analyst Views on SONY
Wall Street analysts forecast SONY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SONY is 34.00 USD with a low forecast of 34.00 USD and a high forecast of 34.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
Wall Street analysts forecast SONY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SONY is 34.00 USD with a low forecast of 34.00 USD and a high forecast of 34.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
Current: 28.460

Current: 28.460

Neutral -> Buy
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Reason
Nomura upgraded Sony to Buy from Neutral with a 5,300 yen price target. The firm, which forecasts renewed growth for PS Plus and sustained growth for music on renewal of contracts with digital service providers, raised its operating profit forecasts and hiked its sum of-the-parts-based price target.
TD Cowen raised the firm's price target on Sony to $34 from $31 and keeps a Buy rating on the shares. The firm said Q2 results beat on the top and bottom line and nioted guidance was raised as USD recorded music streaming revenue was the strongest in two years.
Peer Perform
to
Outperform
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Reason
Peer Perform
to
Outperform
Reason
Wolfe Research upgraded Sony to Outperform from Peer Perform with a 5,300 yen price target. The firm says the company has a "triple threat" of games, anime, and music. The company's video games and music segments "enjoy powerful positions in expanding markets," the analyst tells investors in a research note. Wolfe sees the stock re-rating higher from current levels.
Wolfe Research
Peter Supino
Downgrades
n/a
Reason
Wolfe Research
Peter Supino
About SONY
Sony Group Corp is a Japan-based company engaged in the games & network services (G&NS), music, movies, entertainment technology & services (ET&S), imaging & sensing solutions (I&SS) and other businesses. It has seven business segments. G&NS segment is involved in network service business, the manufacture and sale of home video game consoles and software. The Music segment mainly includes music production, music publishing and video media platform businesses. The Movies segment mainly includes film production, television program production and media network businesses. The ET&S field mainly includes the television business, audio, video business, still image, video camera business, smartphone business and Internet-related service business. The I&SS segment mainly includes the image sensor business. The Financial segment is involved in the insurance business and banking business. The Other segment consists of activities such as disc manufacturing business and recording media business.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.