Sony: Nomura Cuts Rating On Currency, Weak TV Pricing

Nomura Securities analyst Eiichi Katayama today cut his rating on Sony (SNE) to Neutral from Buy, while slashing his revenue and profit forecast for the company. Katayama wrote in a research note that the downgrade reflects “downward risk from the current forex environment and falling prices of LCD TVs.” He chopped his revenue estimate for the March 2009 fiscal year to 8.25 trillion yen, from 8.5 trillion. For FY 2010, he sees 8.173 billion, also down from 8.5 trillion. His estimate on FY 2009 operating profits falls to 76 billion yen, from 190 billion; for FY 2010, he now sees profits of 104 billion yen, down from 320 billion. Katayama says he now thinks a return to profitability for the company’s television business will take a year longer than he previously thought. “We still regard Sony as the most promising investment investment candidate among Japan’s big three consumer electronics companies,” he writes. “However, with LCD TV prices falling ... (link)