Sony Corp. Struggles Will Continue

New York London GMT Tokyo Singapore

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.

Check Out These Related Posts:

If you like this article please...

Subscribe by RSS Subscribe by Email

Email This Post To A Friend

Recent News:

*IMF Chief Economist: Brazil May Be Hurt By An Appreciating Real When Yuan Weakens Versus Dollar - Report - 1 min ago
Global Economy Passed The Worst, IMF Chief Says - 12 mins ago
ING: Eurozone Must Avoid A Premature Exit - 22 mins ago
Asian Markets End In Positive Territory; Commodity Stocks Rise - 22 mins ago
Eurozone Private Sector Activity Expands For Fourth Month In November - 28 mins ago

Opinions From Our Contributors

Commodities China Owns The Heavy Stone Has Gold Just Broken Out Of Its Trend Channel? The Dirty Little Secrets Of Warrants, Options & LEAPS Interesting Articles To Read The Forgotten Commodity - Rice Commodity Investing: ETFs Or Mutual Funds? John Paulson Launching A Gold Fund With $250M Of His Own Money Profit From The Falling Dollar With ETFs Wheat Playing Catch-Up As Commodities Rally Regulators And Commodity ETFs: Why They’re Evolving Read More »	Financials Financial ETFs Still Remain Vulnerable Ron Paul Thinks That Fed “Oversight Is Laughable” Buffett Borrows For Rail Acquisition Investment Ideas: Here Are 3 Dirt Cheap Stocks Treasury To Auction TARP Warrants Dear Reader, We Cannot Criticize Goldman Sachs. Instead, We Admire It 2010 Outlook For The US Banking Industry Get Rid Of Your General Electric Shares Tufts Endowment And Risk Taking? Regional Bank ETFs: The Bad And The Good Read More »	Exchange Traded Funds Biggest Gainer ETFs For The Week Ended 22 Nov What You Should Know About Precious Metals ETFs And Taxes Main Street Vs. Wall Street: Using ETFs To Capitalize Why You Should Watch This Leisure & Entertainment ETF Biotech Investing: Spread Your Risks With ETFs Are You Going For Yield With Your ETFs? Rydex Market Timers: At It Again Is An Asset Bubble Forming In Hong Kong’s ETF? Senior Secured Floating Rate Bonds: The Best Investments To Own When Interest Rates Rise Why Gold Will Surge To A Record $2,000 In 2010 Read More »
Stocks Stock Investor Sentiment: Will This Week Be Another Repeat Of The Last Two? How Does Volatility Affect Stock Options? There Is A Considerable Gap Between What The Fed’s Saying And What It’s Thinking S&P 500 Flat Over The Week As Investors Reflect On Prices Versus Fundamentals Singapore Stock Market Update: Focus On Blue Chips I’ve Noticed A Profitable Pattern Stock Picks For Monday: Nanometrics, Melco Crown Entertainment, MetroPCS Communications And Cell Therapeutics S&P 500 Index Is Still Overvalued This Small Oil Exploration Company Is Ripe For A Takeover… Here’s How To Profit 3 Steps To Becoming A More Successful Trader Read More »	Forex Alternatives To The US Dollar As The World’s Reserve Currency British Pound Retracing Friday’s Slide Against The US Dollar Month To Date Review Of The Market One Reason Why The US Dollar Might Rise Forex Wrap-up: A Massive Short-Covering Rally In The US Dollar May Just Be Starting Australian Dollar: Caution Canadian Dollar: Caution “Audit The Fed” Bill Moves Along USD/JPY Pushing Against The 100 Hour Moving Average At 89.11 Swiss Franc: The Downside Prevails Read More »	Economy Should A House Be Treated As A Great Investment? Economic, News And US Earnings Reports For The Week Nov 23 - 27 Spitting On The Boomers’ Financial Legacy The Economists Are Wrong Again What’s Triggering America’s Populist Rage? China Will Blow Up Before It Grows Up Contrary To Conventional Wisdom, When China Drops Its Currency Peg, The Immediate Benefits Will Flow To The Chinese, Not Americans Societe Generale Tells Investors How To Prepare For Potential “Global Collapse” Obama Commits To Free Trade Agreement With South Korea, But Auto Trade Remains An Obstacle Exponential Growth, Finite World Read More »