Sony's Growth Potential Driven by Music, Games, and Sensor Spin-Off: Analyst Upgrades to Buy with ¥4,820 Target

Jefferies analyst Atul Goyal maintained a Buy rating on Sony with a ¥4,820 price target, citing potential growth in music and games subscription services, a 10% operational profit growth by FY2026, and a 13% operational profit increase by FY2027. The analyst also expects the spin-off of Sony's Sensors division to enhance the company's price-to-earnings ratio by 20-30%, unlocking significant shareholder value.

Sony (SONY) closed at $24.88 in the latest trading session, marking a -1.97% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.4%. At the same time, the Dow added 0.47%, and the tech-heavy Nasdaq gained 0.24%. Heading into today, shares of the electronics and media company had lost 0.63% over the past month, lagging the Consumer Discretionary sector's gain of 2.16% and the S&P 500's gain of 4.61% [1].

The investment community will be closely monitoring the performance of Sony in its forthcoming earnings report. The company's upcoming EPS is projected at $0.24, signifying steadiness compared to the same quarter of the previous year. SONY's full-year Zacks Consensus Estimates are calling for earnings of $1.16 per share and revenue of $79.87 billion. These results would represent year-over-year changes of -5.69% and -6.09%, respectively [1].

Jefferies analyst Atul Goyal maintained a Buy rating on Sony with a ¥4,820 price target, citing potential growth in music and games subscription services, a 10% operational profit growth by FY2026, and a 13% operational profit increase by FY2027. The analyst also expects the spin-off of Sony's Sensors division to enhance the company's price-to-earnings ratio by 20-30%, unlocking significant shareholder value [2].

Sony is currently sporting a Zacks Rank of #3 (Hold). Investors should also note Sony's current valuation metrics, including its Forward P/E ratio of 21.83. This indicates a discount in contrast to its industry's Forward P/E of 30.49. Investors should also note that SONY has a PEG ratio of 12.2 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate [1].

The Audio Video Production was holding an average PEG ratio of 12.2 at yesterday's closing price. The Audio Video Production industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 60, placing it within the top 25% of over 250 industries. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors [1].

References:
[1] https://finance.yahoo.com/news/sony-sony-stock-declines-while-215003942.html
[2] https://economictimes.indiatimes.com/news/international/us/sony-reveals-playstation-plus-august-2025-games-lies-of-p-dayz-my-hero-ones-justice-2-headline-what-might-be-the-best-ps-plus-month-of-the-yearplus-15th-anniversary-avatar-bonuses/articleshow/122980532.cms