2023-10-16 11:21:19 ET
Benchmark initiated coverage of Sony Group with a Buy rating and ¥14,500 price target, noting that the conglomerate excels in electronics and entertainment, leading the 2022 global console market with a 45% market share.
Brokerage predicts that the PS5 sales will see significant growth, with sales expected to outdo prior year figures significantly. Sony expects sales of 25M PS5 units in 2023, brokerage added.
Growth in PS5 sales will be driven by healthy 1st and 3rd party software launces, and the recent announcement of the PS5 Slim and the Playstation Portal.
Benchmark expects the upcoming launch of "Marvel's Spider-Man 2" to act a catalyst for software sales, boosting revenue during the holiday period.
According to Benchmark, price increases will fuel growth in subscription revenues in the near term. Sony's portfolio of intellectual property presents substantial upside potential, exemplified by the successful adaption of "The Last of Us".
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Benchmark expects Spider-Man 2 to boost PS5 sales, initiates coverage of Sony with Buy