We are launching coverage of Sony with a target valuation of the company’s stock of $ 144. Sony is a world-renowned company with a leading position in computer games and music, as well as a popular film and television business. Sony also has a leading position in the high-sensitivity CMOS sensor market.
TIKR
SONY
PRICE
$118
TARGET PRICE
$144
UPSIDE
22%
We believe the company is trading at an unfair discount to the underlying assets of the holding due to unfounded concerns about conglomeration. In our opinion, this is happening against the backdrop of the fact that the market predominantly values Sony’s technology assets, in particular from the consumer electronics field. At the same time, market participants pay little attention to the valuation of entertainment assets and overlook the fact that this category of assets already generates half of the company’s revenue and EBITDA.
Sony strives to fulfill its Purpose to “fill the world with emotion, through the power of creativity and technology,” under the corporate direction of “getting closer to people.” Sony provides innovative products and content rich with Kando (emotion) based on the dream passed down from its founders to enrich people’s lives through the power of technology. As a creative entertainment company with a solid foundation of technology, Sony manages its businesses with a long-term view centered around its Purpose and works to create value for the future by drawing on the strength of its diverse businesses and employees. (Source: company reports)