5 Most Promising Tech Stocks According to Analysts

4. Sony Group Corporation (NYSE:SONY)

One-Year Price Target: 133.55

Sony Group Corporation (NYSE:SONY) is one of the biggest tech conglomerates that are poised to thrive because of their diversified income streams. Sony Group Corporation (NYSE:SONY)’s gaming business has been under pressure amid a broader slowness in the industry. However, analysts believe Sony Group Corporation (NYSE:SONY) has long-term growth catalysts because of Sony’s expansion in EVs, its strengths in digital entertainment, movies and music industry.

Recently, investment firm Cowen’s analyst Doug Creutz increased his price target for Sony Group Corporation (NYSE:SONY) shares to $118 from $102 and kept an Outperform rating.

Of the 920 hedge funds tracked by Insider Monkey, 27 hedge funds had stakes in Sony Group Corporation (NYSE:SONY). The total value of these hedge funds’ stakes was over $706 million.

Aristotle Capital made the following comment about Sony Group Corporation (NYSE:SONY) in its Q3 2022 investor letter:

“Sony Group Corporation (NYSE:SONY), the global provider of video games and consoles, image sensors, and music, as well as movies, was a major detractor for the period. The share price of the company has struggled this year following its strong performance in 2021. Signs of a slowdown in the gaming industry (as people seem inclined to take on outdoor activities as pandemic fears have subsided), combined with sales of its PlayStation 5 that have been held up by a global parts shortage, have led to gaming‐related software sales falling more than 20% year‐over‐year. Rather than focusing on short‐term demand dislocations, we focus on the company’s ability to continue migrating videogame users toward the firm’s subscription offerings, as well as its capacity to leverage content across its video, music and gaming platforms. We are also impressed with the expansion of Sony’s Music segment, which has been supported by the pervasiveness of streaming services. Management’s ongoing work to improve the company’s TV and film studios is bearing fruit as well, with sales growing 67% year‐over‐year for its Pictures segment as its regional strategy has taken hold, including recent progress made toward solidifying a merger plan with India‐based Zee Entertainment. All of this is to say we remain excited by the oligopolistic nature of the businesses Sony operates in, and the future prospects for the company given its leadership in image sensors, music publishing and gaming consoles.”