On Thursday, Macquarie has downgraded shares of Sony Corp (TYO:6758). on the New York Stock Exchange (NYSE:SONY) from Outperform to Neutral. The firm also set a price target for Sony (NYSE:SONY) stock at JPY15,000.00.
The revision comes as Sony's share price approaches the target set by Macquarie. The analyst cited concerns that market expectations could be at risk considering Sony's unimpressive financial year 2025 guidance. The firm anticipates that growing structural challenges within Sony's games business may hinder profit growth, falling short of the consensus expectations among sell-side analysts.
In addition to the downgrade, the firm acknowledged Sony's strategic move to spin off its Financial Services segment and to deconsolidate it in 2025. This decision is expected to reverse the full merger that occurred in 2020. The spin-off and deconsolidation are seen as a positive step, but the firm remains cautious due to the anticipated challenges facing the games division.
Macquarie's assessment reflects a shift in expectations for Sony, suggesting a more conservative outlook on the company's near-term financial performance. The firm's analysis indicates that while there are positive aspects to Sony's strategy, the overall growth prospects in the games sector may not align with previous expectations.
Investors and market watchers will be monitoring Sony's performance closely, particularly in relation to its gaming business and the upcoming financial services spin-off, to gauge the impact of these factors on the company's stock performance.
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