Phil Elliott
08:30 (BST)
16/12/2008
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Sony stock slides as analysts cut ratings
Shares in Sony fell by 5.9 per cent today as two key analysts cut their earning predictions for the company and downgraded its status.
Stock closed at JPY 1825 (USD 20.20), falling significantly further than the Nikkei 225 average of 1.1 per cent, with both Credit Suisse and Deutsche Bank expressing concern at the company's plight.
"We believe fundamental changes to its business structure are necessary," said Credit Suisse's Koya Tabata, according to Bloomberg. "Compared to its peers both at home and overseas, Sony has been slow to react to the current crisis."
Credit Suisse cut its rating from neutral to underperform, and Tabata increased his losses estimate for the company from JPY 22.6 billion (USD 251 million) to JPY 150 billion (USD 1.66 billion), also cutting his sales forecast from JPY 8.9 trillion (USD 98.7 billion) to JPY 8.1 trillion (USD 89.8 billion).
Meanwhile Deutsche Bank changed its rating from buy to hold, and cut its stock price estimate by 49 per cent to JPY 2050 (USD 22.70) on concerns over operating costs.
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