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Research Alert: CFRA Reiterates Buy Opinion On Shares Of Sony Group
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Research Alert: CFRA Reiterates Buy Opinion On Shares Of Sony Group
Aug 7, 2025 9:45 AM

12:25 PM EDT, 08/07/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target price for Sony ( SONY ) to USD31 from USD30, based on a FY 26 (Mar.) P/E of 25.0x. We keep our EPS estimates unchanged. While our raised target implies a wider premium (32%) against its five-year average forward P/E of 19.0x, we believe this continues to be justified by the Group's transformation into an increasingly asset-light business model, centered around its higher-margin entertainment IP and services divisions. These enhancements continued to be evident in its Q1 results, which saw 36.5% Y/Y growth in operating profits, fueled by exceptional momentum in its Game & Network Services (G&NS) and Imaging & Sensing Solutions (I&SS) segments. We expect margins to continue improving over the near to midterm, aided by this improving business mix, on top of a reduced impact from U.S. tariffs. Additionally, the spin-off of Financial Services remains on track, which we anticipate will further enhance this asset-light profile while improving shareholder returns going forward.

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