Sony Corporation (NYSE:SNE) has been downgraded by Macquarie on February 01 which now rates the stock as Neutral compared with Outperform rating suggested in the past. Analysts at Citigroup, shed their negative views on November 30 by lifting it fromNeutral to Buy. The stock won favor of Credit Suisse analysts who expressed their confidence in it using an upgrade from Neutral to Outperform on September 10. Morgan Stanley analysts came out with bearish views on October 11 when the call was made. They think the stock is now Equal-Weight compared to to their prior call for Overweight.
SNE stock dropped -1.16% in recent trade and currently has a stock-market value of $59.69B. The shares finished at $46.12, after trading as low as $45.95 earlier in the session. It hit an intraday high Thursday at $46.24. Trading activity significantly weakened as the volume at ready counter decreased to 778,110 shares versus 1,197,110 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,324,318 shares. The stock is now 8.7% above against its bear-market low of $42.43 on February 07, 2019. It has retreated -32.31% since it’s 52-week high of $61.02 reached in October. Now the market price is down -7.89% on the year and down -4.47% YTD.
Wall Street’s most bullish Sony Corporation (NYSE:SNE) analysts are predicting the share price to blow past $81.78 per share during the next 12 months. The current median share price forecast by them is $68.85, suggesting that the stock could increase 49.28% in that time frame. The average price target of $66.98 calls for a nearly 45.23% increase in the stock price.
Sony Corporation (SNE)’s 50 day simple moving average (SMA 50) price is $47.52 and its 200-day simple moving average (SMA 200) price is $51.8. The company’s stock currently has a total float of 1.01B shares. Its weekly volatility is hovering around 1.31% and felt 1.13% volatility in price over a month. On the upside, the share price will test short term resistance at around $46.26. On a downside, the stock is likely to find some support, which begins at $45.97. The failure to get near-term support could push it to $45.81.
When looking at valuations, Sony Corporation (SNE) has a cheap P/E of 8.22x as compared to industry average of 22512.2x. Moreover, it trades for 11.8 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.73x price/book and 0.78x price/sales. Compared to others, Sony Corporation is in a different league with regards to profitability, having net margins of 9.6%. To put some perspective around this, the industry’s average net margin is 2.06%. SNE’s ROE is 24.3%, which is also considerably better than the industry’s ROE of 7.02%. It’s also not liquid in the near term, with a current ratio of 0.9. The stock has a debt/capital of 0.37.
Shares of SNE have dropped -6.9% since the company’s most recent earnings report. Over the past 11 fiscal quarters, Sony Corporation (NYSE:SNE) has topped consensus earnings estimates in 9 quarters (75%), missed earnings in 2 quarters (16%), whereas at 0 occasion EPS met analyst expectations. SNE last reported earnings that exceeded expectations. The company raked in $3 per share, -95.37% change on the same period last year. That was better than consensus for $1.82. Revenue for the recent quarter stood at $21.3 billion, down -9% on last year and below the $23.64 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $17.49 billion to $17.49 billion, which should be compared with $0 generated last year. EPS is seen in a range of $0.86 to $0.86, against the 0 reported a year ago.