Analyst Note| Kazunori Ito |
Amid various uncertainties, we are encouraged by Sony Group’s solid guidance for fiscal 2022 (financial year ending March 2023). In particular, revenue growth guidance for two business segments, the game and network services segment and imaging and sensing solutions segment, was much higher than we had expected. Based on the positive revenue outlook, we believe that Sony’s new operating income guidance of JPY 1.16 trillion, 1.9% up from the previous year excluding one-time factors, is conservative, which is not surprising in a time of great uncertainty. We plan to review our earnings forecasts after Sony’s business segment briefings, which will be held later this month. Nevertheless, we believe Sony’s shares are undervalued as we believe Sony’s business portfolio is much more resilient than the market seems to believe.