Benchmark has lowered its price objective on Sony Corp. to JPY4,250 from JPY5,100, while keeping a Buy rating on the shares. The adjustment comes amid recent strength in Sony’s reported results and follows a six-month share price decline of 15.14%.
The analyst revision was issued after Sony reported its Q3 results for fiscal 2025. The company topped expectations on earnings, delivering what Benchmark described as a strong beat driven by margin outperformance across several of its operating segments. Revenue for the quarter modestly exceeded the consensus forecast.
Benchmark highlighted three business areas where performance stood out: Imaging & Sensing Solutions, Music, and the platform monetization within Game & Network Services. Those divisions were cited as primary contributors to the stronger-than-expected profitability for the period.
Even with the lower price target, Benchmark maintained a constructive stance. The research note pointed to several near-term catalysts that the firm believes support upside potential: continued strength in mobile image sensors tied to high-end smartphone launches; ongoing streaming and intellectual property monetization in the Music segment; and incremental revenue from software and services associated with live-service game titles.
Benchmark said these drivers underpin what it views as an attractive risk-reward profile for Sony, despite adjustments to its forward assumptions reflected in the reduced target. Separately, InvestingPro data referenced a price-to-earnings ratio of 16.6, which the data provider characterizes as indicating the stock is currently undervalued.
In related company disclosures, Sony Group Corp reported Q3 FY2025 results that showed a modest increase in sales and a record operating income. Earnings per share were slightly above expectations while reported revenue aligned with forecasts. Following the announcement, the stock traded with little net movement, a sign of balanced investor reaction.
Analyst activity around the name has so far remained stable: no significant upgrades or downgrades tied to the quarter have been reported, a situation Benchmark and market observers interpret as consistent sentiment across the coverage universe. Investors continue to watch developments in sensors, music monetization and gaming services closely given their bearing on near-term cash generation and margin trends.
Key takeaways
- Benchmark cut Sony’s price target to JPY4,250 from JPY5,100 but left its Buy rating intact.
- Sony beat Q3 FY25 earnings expectations, driven by margin outperformance and modest revenue upside.
- Benchmark cited strength in image sensors, music streaming/IP monetization and live-service game software as catalysts supporting the stock.
Context on valuation and market reaction
InvestingPro data lists a P/E of 16.6 for the company, which is noted as consistent with an undervaluation signal. The stock’s limited movement after the quarter and the absence of notable analyst rating changes suggest a balanced market view following the results.