Wolfe Research’s Peter Supino has downgraded Tokyo-listed shares of Sony Group Corporation’s stock, warning that rising costs and weakening consumer confidence from President Donald Trump’s reciprocal tariffs could pose a “real risk” to the Japanese multinational conglomerate’s profit forecasts.
Supino, who downgraded the stock from an “outperform” to “peer perform” rating, estimates that roughly 30% of Sony’s customer sales are derived from the U.S., while around 70% of its core operating profits, excluding financial services, come from consumer discretionary segments such as video games, consumer electronics and image sensors.
“Sony faces a risky [fiscal year 2025] outlook for both topline and operating profit growth,” Supino wrote in a Monday research note.