Sony Group: Spider-Man Lights Up Q2, But Digital Gaming Transition Is The Real Story

Sony Group (SONY) is reiterated as a Buy with a $33.51 price target. The company's Pictures segment is expected to see durable revenue growth, driven by the success of Spider-Man: Brand New Day, which is projected to generate $2 billion in ticket sales, and a strong upcoming film slate.

However, the transition to fully digital gaming poses a risk of consumer backlash, particularly among Gen Z, which could dampen growth in the Gaming & Network Services segment. Despite these headwinds, SONY trades at a modest 12.81x EV/EBITDA, below its historical midpoint, presenting an attractive entry point.