In a report released today, Martin Yang from Oppenheimer maintained a Buy rating on Sony Group (SONY – Research Report), with a price target of $108.00.
Martin Yang’s Buy rating for Sony Group is due to a combination of factors. Firstly, the strong performance of Sony’s Gaming & Network Services (G&NS) and Music segments contributed to his positive outlook. The G&NS segment witnessed a 24% year-over-year increase in sales, excluding the foreign exchange benefits, predominantly driven by the impressive growth of PlayStation 5 hardware sales. The Music segment also registered a 10% advancement in sales, excluding the foreign exchange benefits, with stable growth in streaming and a significant quarter-over-quarter increase in mobile gaming.
Moreover, the Pictures segment saw a 13% year-over-year rise in sales on a USD basis, primarily boosted by improved TV Production business. Although the Electronic Products & Solutions (EP&S) and Imaging & Sensing Solutions (I&SS) segments experienced a drop in sales and operating income, management’s commitment to cost-cutting and the revised FY23 outlook, which anticipates a slight increase in revenue and operating income, further bolstered Yang’s Buy recommendation. Despite concerns regarding the company’s ability to reach its unit goal for PS5, the management’s comfort with the projected ramp of PS5 and the gaming segment’s further margin deterioration also influenced Yang’s positive rating.
According to TipRanks, Yang is an analyst with an average return of -7.8% and a 31.25% success rate. Yang covers the Technology sector, focusing on stocks such as Unity Software, Apple, and Universal Display.
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Sony Group (SONY) Company Description:
Founded in 1946, Tokyo, Japan-based Sony Corp. manufactures and sells electronic equipment, instruments, devices, game consoles, and information technology products for consumers, professionals and industrial markets across the world. The company also produces and distributes music, pictures, computer entertainment, and online businesses. It generates revenues from the following operating segments: Game & Network Services, Music, Pictures, Electronics Products & Solutions, Imaging & Sensing Solutions, Financial Services, and All Others.
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