Report Says Sony Shares Could Double in 2 Years
Jul 14, 2003
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Consumer electronics maker Sony Corp., which suffered a sudden 25 percent drop in its share price in April after a profit shortfall, is catching the eye of value investors, and the stock could double to U.S. $60 within two years, Barron's reported.
In the cover story of its July 14 edition, the financial publication cited fund manager Bill Miller of Legg Mason as saying Sony is a likely beneficiary of a long-overdue recovery in Japan's economy and stock market.
"With a little help from the economy, the price conceivably could double over the next 2 years, to about $60," the report said of Sony's American Depositary Receipts. Sony ADRs closed at $32.02 in New York Stock Exchange trading on Friday.
Barron's cautioned that earnings for the Japanese company will not recover and begin growing again until sometime next year.
The article also said Sony faces trouble in its music and film businesses. It pointed to management miscues that fueled the recent financial disappointment and said the company's much-discussed convergence strategy remains a distant hope. (Reuters)
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