CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We keep our target price at JPY4,200, at 9.3x FY 27 (Mar.) EV/EBITDA, comparable to the five-year mean, balancing earnings risk from higher memory costs with projected resilience of gaming software/fee, music, and image sensors. In our view, Sony could benefit from its software and fee-based revenue (e.g., digital game sales, PlayStation platform commissions, and music royalties), which helps stabilize profits against the more cyclical game console sales. This revenue mix also mitigates U.S. tariff and memory cost risks, as these primarily affect hardware sales/margins. In Gaming, we expect Sony to focus on monetizing its large PlayStation user base through game sales, in-game purchases, and PlayStation Plus subscriptions, rather than aggressively growing console sales, helping limit margin pressure despite rising memory costs, even though Sony has indicated its sufficient memory supply for FY 27. We keep our FY 27 EPADS forecast at JPY212.95 and initiate FY 28's at JPY232.47.