©Reuters.
On Thursday, Macquarie downgraded the stock. Sony Coop (TYO:). New York Stock Exchange (NYSE:SONY) goes from Outperform to Neutral. The company also set his price target for Sony (NYSE:) stock at 15,000.00 yen.
The revision comes as Sony's share price approaches the target set by Macquarie. The analyst expressed concern that market expectations could be at risk given Sony's lackluster fiscal 2025 outlook. The company expects increasing structural challenges in Sony's gaming business to hinder profit growth, which could fall below sell-side analyst consensus estimates.
In addition to the downgrade, the company confirmed that Sony has taken strategic steps to separate its financial services division and deconsolidate it in 2025. This decision is expected to wipe out the complete merger that took place in 2020. Although it's a positive step, the company remains cautious due to the challenges the gaming division is expected to face.
Macquarie's assessment reflects changing expectations for Sony and suggests a more conservative outlook for the company's near-term financial performance. According to the company's analysis, while there are positive aspects to Sony's strategy, the overall growth outlook for the gaming sector may not match previous expectations.
Investors and market watchers will be closely monitoring Sony's performance, particularly related to its gaming business and upcoming financial services spinoff, to gauge the impact of these factors on Sony's stock price performance.
This article was generated with the help of AI and reviewed by an editor. Please see our Terms of Use for more information.
