JPMorgan raises Sony stock price target to $4,600

On Thursday, JPMorgan maintained an Overweight rating on Sony Corp. (TYO:6758:JP) (NYSE: SONY) and increased the price target to JPY4,600.00, up from the previous JPY4,200.00. The adjustment by analyst Junya Ayada reflects a modest update to the company’s overall forecasts, influenced in part by revised foreign exchange assumptions. The company, currently valued at $151.22 billion, has demonstrated strong momentum with a 35% price return over the past six months. InvestingPro analysis suggests the stock is trading slightly above its Fair Value, with a "Good" overall financial health score of 2.77 out of 5.

Ayada highlighted a modest 4-5% increase in the operating profit forecast for Sony (NYSE:SONY)’s Games & Network Services (G&NS) division for the fiscal years 2025-26. Despite the slight change, Ayada believes that the division’s underlying earnings potential is stronger than what the current profit figures suggest.

The analyst anticipates a more favorable market valuation of Sony’s platform business, which includes prominent names such as PlayStation and Crunchyroll. This expectation has led to an increase in the target enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) multiple for the G&NS segment, from 20 times to 23 times.

The revised price target and maintained Overweight rating indicate JPMorgan’s continued confidence in Sony’s performance and potential for growth. The firm’s analysis suggests that the market may soon recognize the value inherent in Sony’s platform services, which could lead to a re-rating of the stock.

Sony’s financial outlook, as seen through the eyes of JPMorgan, points to a robust gaming and network segment that’s poised to contribute significantly to the company’s earnings. With the new price target set for December 2025, investors will be watching Sony’s progress closely as it continues to expand and capitalize on its platform business.

In other recent news, Sony Corporation’s financial performance has been a focal point for analysts. Bernstein has raised its price target for Sony to JPY4,600, citing strong Playstation sales that have led to earnings surpassing expectations. The firm highlights potential growth in software revenue and effective cost management as key factors in Sony’s positive outlook. Macquarie also increased its price target to JPY4,050, noting Sony’s third-quarter operating profit exceeded forecasts, particularly in the Games division, driven by third-party revenue. Meanwhile, Citi maintained a neutral stance with a price target of JPY2,800 following Sony’s announcement of a significant management restructure, including the appointment of Hiroki Totoki as CEO.

Sony’s gaming division continues to be a major contributor to its success, with Bernstein maintaining an Outperform rating and highlighting the Playstation 5’s market dominance. The firm anticipates strong user engagement and revenue from upcoming game releases, including Grand Theft Auto VI. However, Macquarie noted potential negative impacts from Electronic Arts (NASDAQ:EA)’ reduced financial guidance, which could slightly affect Sony’s operating profit. Despite this, Macquarie remains optimistic about Sony’s long-term growth in the gaming sector, projecting significant gains by the fiscal year ending March 2026.

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