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The shares of giant electronic company Sony Corporation (NYSE: SNE) are on the verge of breaking out and reaching a new decade all-time high.
Notably, Sony Corporation (NYSE: SNE) shares jumped 5.33% during Wednesday’s trading session to close the day trading at $81.60. Additionally, they were up over 2% during Thursday’s premarket in regards to yesterday’s close.
The Japanese corporation has had its business thrive through the pandemic and it is expected to continue rising as the global economy recovers. As a result, on Wednesday Sony raised its forecast for its operating income by approximately 13% to 700 billion Japanese yen. Both the company and its shareholders are confident the core business operations will thrive more and yield more profits despite the increased competition in the electronic industry.
At the time of writing, the company had a market capitalization of around $94.71 billion with approximately 1.26 billion outstanding shares. Such a rich cash reserves not only entitles the company a better chance of winning the market but also a chance to venture into more promising areas. In the past 52 weeks, Sony shares have ranged between 50.94 and 84.15. Hereby indicating they are retesting yearly all time high and likely to continue in the coming quarters.
Sony and Its Market Performance
Jefferies Asia’s Atul Goyal told media outlet CNBC on Thursday that he’s “extremely bullish” on Sony shares and its business operations. Notably, Sony shares received an average of Buy rating from 26 Wall Street analysts according to marketwatch analytics. According to Jefferies Asia, which is a shareholder in the company, it expects Sony shares to hit 13,230 yen per share. Apparently, the price target is more than 50% higher than where the price currently sits.
Goyal indicated that Sony is one of the best companies in their coverage. As most people still remain socially distanced at their homes, Goyal anticipates the new PlayStation 5 will sell more in the coming quarters. He further highlighted that the market might experience a shortage of PS5 as the demand surpasses the supply rate. With most assemblies happening in China where different companies have reopened their operations, the supply shortage is expected to be covered in the coming quarters. “Demand is so strong for the product that that will keep the news flow that this product is sold out in most places for a while,” Goyal explained.
Having jumped 20%, 3.92%, 6.74%, and 9.38% in the past ten months, three months, one month, and five days respectively, the company is at a better chance as the future is more brighter especially in its field of technology.