UPDATE: Jefferies Raises PT on Sony on Valuation

In a report published Monday, Jefferies analyst Atul Goyal reiterated a Buy rating on Sony SNE, and raised the price target from $26.30 to $27.80.

In the report, Jefferies noted, “Since initiation, we have held that most of Sony's value resides in C (Content - Movies and Music) and E (Electronics) is valued zero. Recent news of Softbank's spurned bid for Universal Music for $8.5b (16.2x $525m CY12 OP) gives a useful benchmark, suggesting pot'l value of Sony Music business (3/13 OP of ¥37b or $450m) at $7.2b (or ¥720b, up from earlier est of ¥550b). Using this, we raise our SOTP price target to ¥2,780 [US$27.80] (+26%).”

Sony closed on Friday at $22.14.