STOCKS | Bernstein Raises Sony Group U.S. Price Target to $26

On November 5, Bernstein raised its price target for Sony Group’s U.S.-listed shares to $26 from $23 and maintained its Market Perform rating. According to Sina Finance, analyst David Dai said Bernstein raised its operating-profit forecast for the current fiscal year by 10% and modestly increased its earnings outlook for the next fiscal year, mainly due to foreign-exchange benefits from yen depreciation. Bernstein used a 17-times price-to-earnings multiple to raise its yen-denominated target for Sony from 3,800 yen to 4,100 yen. The new target still implied about 4% downside from the current share price. The firm said Sony’s shares traded at a price-to-earnings ratio of about 22.43, above the valuation multiple it used, and maintained a neutral view despite recent strong results and improved earnings expectations. Sony previously reported that operating profit in its second fiscal quarter rose 45% year over year to 622.3 billion yen and net profit increased 44% to 449.6 billion yen. The company also raised its full-year guidance, mainly driven by strong performance in its gaming, film, and music businesses.