Tokyo - Sony Corp shares are undervalued and could rise as much as 39%, Oasis Management’s
Seth Fischer said at the Sohn Conference in Hong Kong.
Sony has undergone a massive turnaround since CEO
Kazuo Hirai took the helm in 2012, jettisoning unprofitable businesses
such as its Vaio personal computer unit, the chief investment officer of
the Hong Kong-based hedge fund said.
People’s devotion to gaming and the growth potential of the company’s
television business within its entertainment unit are two of Sony’s
strengths, he said.
Fischer said some of the best investing ideas are sometimes hidden in
plain sight, noting how the so-called FANG stocks - Facebook,
Amazon.com, Netflix and Google parent Alphabet - have
driven the US stock market higher. Sony is another example, he said.
He also cited what he sees as good corporate governance at the
Japanese company, including targeting return-on-equity of more than 10% and appointing a majority of independent directors. Under Hirai,
Sony has also
restructured businesses and reduced headcount.
shares have risen 26% this year, outperforming the benchmark Topix index’s 5.2% gain. The stock
pared losses in afternoon trade in Tokyo, closing down 1% at ¥4 126, having earlier fallen as much as 1.9%.
At last year’s Sohn Conference in Hong, Fischer presented a bearish thesis on robot-suit maker
Cyberdyne. The stock has fallen more than
40% since then.
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