Bank of America Securities analyst Mikio Hirakawa has reiterated their bullish stance on SNEJF stock, giving a Buy rating yesterday.
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Mikio Hirakawa has given his Buy rating due to a combination of factors that highlight Sony’s growth potential and strong financial performance. The expansion of the PlayStation platform has notably contributed to an increased visibility of profit growth, with a significant rise in monthly active users and robust sales growth in network services and add-on content. Furthermore, PlayStation 5 console sales have shown impressive growth despite reduced promotion costs, signaling a solid future for the gaming segment.
Another factor supporting the Buy rating is Sony’s strategic move to announce a ¥50 billion share buyback, which reflects confidence in its financial health and shareholder value. The upcoming spin-off of the financial services business in 2025 is anticipated to act as a catalyst for the share price. Moreover, Sony has raised its operating profit guidance due to strong game business performance, and although a cautious outlook is maintained for semiconductor sales, overall growth is expected to continue fueled by the gaming and semiconductor sectors.
In another report released yesterday, Jefferies also reiterated a Buy rating on the stock with a Yen3,890.00 price target.
SNEJF’s price has also changed dramatically for the past six months – from $88.680 to $23.233, which is a -73.80% drop .