Sony stock price target raised to $34 by CFRA on Japan optimism

Investing.com - CFRA raised its price target on Sony (NYSE:SONY) to $34.00 from $31.00 while maintaining a Buy rating, citing increased investor optimism following Japan’s appointment of its first female prime minister. The stock, which has delivered an impressive 63.75% return over the past year and is currently trading near its 52-week high of $30.29, maintains a strong analyst consensus recommendation of 1.4.

The research firm kept its earnings per share estimates unchanged but increased its forward price-to-earnings multiple to 28.3x for fiscal year 2026, which ends in March of that year.

CFRA expects the new Japanese administration’s upcoming policy announcements could boost domestic spending, potentially benefiting the country’s consumer and technology companies like Sony.

The analyst note also highlighted Sony’s successful spin-off of its Financial Services division as a positive factor in the firm’s outlook.

CFRA pointed to ongoing corporate governance reforms and improving shareholder return policies in Japan, which it believes will continue to attract foreign investment and support higher valuations for Japanese companies.

In other recent news, Sony Group Corp. has set a reference price of ¥150 for the spinoff listing of its financial unit, Sony Financial Group Inc. This move is part of Sony’s strategy to concentrate on its entertainment and electronics divisions. Additionally, Benchmark has raised its price target for Sony to JPY4,500, citing strong performance in the company’s Game & Network Services segment, which reported record quarterly operating income.

In another development, Sony is reportedly considering the sale of its cellular chipset unit, Sony Semiconductor Israel, as it shifts its focus towards entertainment. Investment bankers are involved in the early stages of this potential sale. Furthermore, Sony Electronics has announced the launch of its RX1R III compact camera, which boasts a 61-megapixel full-frame sensor and AI-based autofocus capabilities. This new release is part of the third generation of Sony’s RX1R series.

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