Sony Corp. Struggles Will Continue
By Zacks Investment Research on March 20, 2009 | More Posts By Zacks Investment Research | Author's Website
We believe Sony Corp. (SNE) will continue to struggle as it faces competition from other innovative digital products and from low-cost Asian manufacturers as the consumer market slows.
Sony posted lackluster Q3 results, hurt by sluggish sales in its core electronics segment due to the ongoing recession. Strong yen, weak consumer demand, sliding consumer spending, and an intensifying price competition are eating into its profits. SNE trimmed its forecast for fiscal 2008 and expects to record its first net loss in 14 years with much lower operating income.
We therefore maintain a Sell recommendation on Sony shares with a 6-month price target of $16.50. This reflects a price-to-sales multiple of approximately 0.2x our expected fiscal 2009 revenue per share, which we believe is a reasonable valuation for a company in Sony’s position.
Stock Investor Sentiment: Changes Within The Indicators
The Mob Rules - At Least So Long As Long As Goldman And The Fed Can Continue To Drive The US Dollar Into The Ocean
Dollars And Books Revisited
Stimulus Is Only Stimulating “Economic Misery”
The Problems With “Printing Your Way Out Of Debt”
*Mauritius October CPI Falls 0.4% On Month - 1 min ago
Moody’s Upgrades China’s Ratings Outlook To Positive From Stable - 51 mins ago
Indian Market Up In Early Trade - 1 hr ago
South Korean Producer Prices Fall In October - 1 hr ago
*Moody’s Raises Outlook On Hong Kong’s Aa2 Government Bond Ratings To Positive - 1 hr ago


