Sony (SNE) Has Several Keys to Keep It Dominant vs. Tier-Two Peers - Analyst

August 26, 2013 9:50 AM EDT
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Sony (NYSE: SNE) could be a stronger contendor in mobile than many think and might be able to grow where other tier-two have run out of room.

CLSA analyst Christian Dinwoodie notes that Sony Mobile shipped 9.6 million smartphones in calendar Q213, up 30 percent over the same period in 2012, giving it fourth-spot in overall global shipments.

Smartphones could also be a dark horse category for Sony over fiscal Q314 through Q315 and contribute over 100¥ billion in profits by Q315.

Sony's cutting-edge components like image sensors and batteries are being used in smartphones by tier-one players and entertainment assets like TV and games help distinguish Sony from others in the market. Another positive is Sony getting over 60,000 patents from Ericsson which will put it in a better position in terms of royalty costs versus tier-two peers, Dinwoodie noted.

Despite solid shipment levels, Sony really has a key presence in Japan and Europe, while it struggles to gain ground in the U.S. and China.

CLSA has Sony at Buy with a price target of 2,900¥.

For an analyst ratings summary and ratings history on Sony Corp. click here. For more ratings news on Sony Corp. click here.

Shares of Sony Corp. closed at $20.21 last Friday.

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