Sony Stock: Memory Price Impact Priced In, BofA Says

Analyst Lowers Target Amid Cost Pressures

Bank of America has reiterated a Buy rating for Sony Group but trimmed its price objective, suggesting that the recent share price decline already reflects the impact of surging memory prices.

Overview of Memory Price Surge

Analysts noted that sharply higher memory costs prompted a 5% reduction in their fiscal year 2027 operating profit estimate for Sony. This adjustment is the primary driver behind the revised price target.

Impact on Sony's Valuation

The sum-of-the-parts price objective was lowered from ¥5,000 to ¥4,600. Despite the cut, the analysis indicates that further downside risk from these higher costs is now limited, as the market has already absorbed the negative news.

Outlook Summary

While facing short-term cost headwinds from the memory market, the Buy rating suggests underlying confidence in Sony's long-term business fundamentals. Investors will monitor how the company manages these component costs moving forward.

FAQ

Q: Why did BofA lower Sony's price target?
A: The target was lowered from ¥5,000 to ¥4,600 due to anticipated higher memory costs impacting future operating profit estimates.

Q: What is the current rating for Sony stock from BofA?
A: Bank of America maintained its Buy rating on the stock.

Source: Investing.com