Deutsche Bank Believes Sony (SNE) EPS will Increase 20% in 3yrs; Reiterates Hold

Deutsche Bank reiterated a Hold rating on Sony Corp. (NYSE: SNE), forecasting that the company's EPS will increase by an average of at least 20% over the coming three years. Deutsche Bank believes that the growth will be propelled by devices and game & network services (G&NS) segments.

Analyst Hiroshi Taguchi commented, "We forecast that Sony's EPS will increase by an average of at least 20% over the coming three years, with the devices and game & network services (G&NS) segments propelling growth. The share price has overly corrected in our view, and we think there is some upside potential in our TP of ¥3,400. However, we think the company will enter a phase in which it must expand investments - especially in the pictures segment and in new product development. As a result, free cash flow may become more constrained than we had expected in the near term. We think management will thus have difficulty balancing offensive and defensive strategies."

For an analyst ratings summary and ratings history on Sony Corp. click here. For more ratings news on Sony Corp. click here.

Shares of Sony Corp. closed at $24.70 yesterday.

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