Investing.com - Goldman Sachs reiterated a Buy rating and JPY4,100.00 price target on Sony Group Corp. (TYO:6758) (NYSE:SONY) following a sell-side meeting with the company’s music business management held on Tuesday. The stock currently trades at $20.38, near its 52-week low of $19.62, down ~20% year-to-date.
The meeting focused on the impact of generative AI on the music business. Sony management said the company is engaging in ongoing discussions with AI-related companies and protecting its rights to leverage generative AI as a revenue opportunity.
Management said the number of companies approaching Sony Music for official partnerships and licenses for new AI-powered products is increasing. The company continues to pursue copyright infringement lawsuits against music-generating AI companies.
Goldman Sachs said it is too early to draw conclusions on the impact generative AI will have on the music market. The firm said Sony’s music catalog and high market share, including in fast-growing regions such as Latin America, are working in its favor in terms of industry positioning in the AI era.
Goldman Sachs expects the stock market to continue to take a wait-and-see approach on the outlook for monetization in the generative AI era. Despite recent weakness, InvestingPro analysis suggests Sony appears undervalued at current levels based on its Fair Value assessment. The company maintains a solid financial foundation with more cash than debt and has paid dividends for 47 consecutive years, according to InvestingPro Tips. For deeper insights, investors can access Sony’s comprehensive Pro Research Report, available for this and 1,400+ other US equities.
In other recent news, Sony Group Corporation reported its fourth-quarter and full-year 2025 earnings, which showed a mixed financial performance. The company significantly missed its earnings per share forecast, reporting an EPS of $0.0911 compared to the expected $0.2196, a decline of 58.52%. However, Sony surpassed revenue expectations, achieving $19.43 billion against a forecast of $18.34 billion, marking a 5.94% increase. In addition to these financial results, Sony Semiconductor Solutions and Taiwan Semiconductor Manufacturing Co. announced a preliminary agreement to form a joint venture. This partnership aims to develop and manufacture next-generation image sensors, with Sony as the majority shareholder. The joint venture plans to establish production lines in Sony’s new facility in Japan. Furthermore, Bernstein SocGen Group raised its price target on Sony to JPY3,500.00 from JPY3,400.00, maintaining a Market Perform rating. The firm highlighted Sony’s focus on profitability, with expectations for operating profit improvements in its I&SS division despite a forecasted revenue decline.
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