Goldman Sachs Sony Group (6758.T): Strong Catalog Ensures Favorable AI Era Positioning; Buy
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Goldman Sachs reaffirms a Buy rating on Sony Group (6758.T) following an SME management meeting, emphasizing that the company's extensive content catalog and dominant market share position it favorably for the artificial intelligence era. Sony's entertainment divisions, encompassing gaming, music, and film, are expected to benefit significantly from rising AI-driven content generation and training data requirements. The company holds a commanding 60% share of the gaming console market, with PlayStation 5 cumulative sales reaching 59 million units and a robust network of 123 million monthly active users. In the music sector, Sony controls rights to over 4 million songs, with subscription revenue growing 22% year-over-year in fiscal 2025. Furthermore, the imaging sensor business commands a 45% share of the smartphone market, poised to benefit from increasing AI camera integration. Goldman Sachs projects fiscal 2028 entertainment revenue will climb to 4.5 trillion yen, accompanied by an 18% operating margin. For fiscal 2026, the firm estimates consolidated revenue at 12.8 trillion yen and operating profit at 1.2 trillion yen. With planned AI investments reaching 500 billion yen by fiscal 2027, Goldman notes the current valuation of 15x fiscal 2026 earnings, below the historical average of 18x, appears highly attractive.