Macquarie raises Sony stock price target to JPY4,050

On Thursday, Macquarie maintained its Outperform rating on Sony Corp. (TYO:6758:JP) (NYSE: SONY) and increased its price target from JPY3,950 to JPY4,050. The adjustment follows Sony (NYSE:SONY)’s third-quarter operating profit, which surpassed Macquarie’s forecasts, particularly in the Games division. The strong performance was attributed to robust third-party revenue, even considering potential drawbacks from Electronic Arts (EA). According to InvestingPro data, Sony’s stock is trading near its 52-week high, with an impressive 10.36% revenue growth in the last twelve months. The stock has garnered strong analyst support, with a consensus rating of 1.38 indicating a Strong Buy recommendation.

The company’s latest financial results revealed that the Games business’s operating profit exceeded expectations. This positive outcome was driven by substantial revenue from third-party (3P) games. Macquarie anticipates that the market will respond favorably to Sony’s financial achievements and the optimistic outlook provided by the company. InvestingPro analysis shows Sony maintains a "GOOD" overall financial health score, with particularly strong marks in profitability and price momentum. For deeper insights into Sony’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

Macquarie’s analysis suggests confidence in Sony’s continued financial success, particularly within its gaming segment. The firm projects significant growth in the Games division’s operating profit for the fiscal year ending March 2026. This projection is based on the current trajectory of Sony’s financial performance and market position.

The price target increase reflects Macquarie’s assessment of Sony’s robust financial health and potential for future growth. The firm’s commentary underscores the expectation that Sony’s gaming business will continue to drive profitability and contribute to the company’s overall success in the coming years.

Investors and market watchers will likely monitor Sony’s stock performance in response to this updated price target and the company’s strategic initiatives to sustain growth in its gaming division and other business areas.

In other recent news, Sony Corp. has seen a flurry of activity with changes in management, analyst ratings, and potential impacts from other companies’ performance. Citi analyst Kota Ezawa maintained a neutral stance on Sony, keeping the price target at JPY2,800. This followed Sony’s announcement of a significant change in its management structure, with Hiroki Totoki set to become the new CEO. Bernstein analysts, led by Robin Zhu, maintained an outperform rating on Sony, with a price target of JPY3,900, highlighting the success of the PlayStation brand.

Sony’s shares were also affected by Electronic Arts Inc . (NASDAQ:EA)’s financial guidance revision, which might lead to a negative impact on Sony’s operating profit. However, Macquarie maintains a positive outlook for Sony’s Games & Network Services (G&NS) segment into the fiscal year ending March 2026.

Morgan Stanley (NYSE:MS) analysts, led by Kazuo Yoshikawa, increased the price target for Sony to JPY4,000, maintaining an Overweight rating. They highlighted the robust earnings of Sony’s G&NS division and expressed confidence in the future prospects of Sony. These recent developments reflect the dynamic nature of Sony’s position in the market.

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