Benchmark analyst Mike Hickey reiterated a Buy rating on Sony Group Corp SONY with a price target of J¥14500.
Sony’s Game & Network Services segment experienced a substantial 32% increase in Q2 sales year-on-year, prompting an upward revision of the FY23 sales forecast by ¥190 billion, reflecting strong PS5 hardware performance and software sales.
The segment’s adjusted OIBDA also saw a notable increase, rising by ¥18.9 billion year-on-year, leading to an enhanced forecast of ¥385 billion.
These positive trends, underpinned by a growing active user base and the planned introduction of a new PS5 model and PS Portal, signal a robust outlook for the segment’s year-end performance and overall profitability.
Sony has updated its FY23 forecast, with sales expected to reach 12 trillion ¥400 billion, an increase from previous predictions. Operating income is set at ¥1.17 trillion, and adjusted EBITDA will likely be ¥1.785 trillion.
Meanwhile, operating cash flow forecasts (excluding Financial Services) have been changed to ¥1.16 trillion due to exchange rate impacts and increased working capital in the G&NS segment, alongside revised exchange rate expectations of ¥142 to the dollar and ¥152 to the euro.
Hickey estimated Sony will payout a FY24 dividend per share of ¥85, or a 0.6% effective yield.
The analyst projects a Q3 revenue of J¥3.499 trillion.
Price Action: SONY shares traded higher by 5.46% at $86.19 on the last check Friday.
Image and article originally from www.benzinga.com. Read the original article here.