SONY
Wall Street’s little buzzkill
TD Cowen just shaved its Sony price target to $29 from $34, but didn’t fully bail — the firm kept a Buy rating. Translation: they still like the stock, but the road to upside may be a little bumpier now that memory prices are acting like they’ve got a caffeine problem.
Why the haircut?
The big worry is memory costs. TD Cowen says AI-driven demand is likely to keep pushing those prices higher, which could ding Sony’s financial outlook. It also trimmed its fiscal 2026 revenue estimate to ¥12.5 trillion from ¥12.7 trillion and lowered operating income before depreciation and amortization to ¥2.23 trillion from ¥2.28 trillion.
The plot thickens
Sony’s not exactly short on moving parts right now. Sony Honda Mobility has paused development on two EV models while it reviews the business plan, and Sony may also be nearing a deal to sell a majority stake in its home entertainment business to TCL Electronics. That’s a lot of strategy chess for one consumer-electronics giant.
The investor takeaway
On top of TD Cowen’s call, Bernstein SocGen Group also downgraded Sony from Outperform to Market Perform over the same memory-price worries. So if you own SONY, the message is pretty clear: the business is still admired, but margin pressure is lurking in the wings like a sequel nobody asked for.
Big picture: Sony isn’t broken — it’s just navigating a pricier parts market, and that can matter a lot when Wall Street is trying to price in the next act.