Downgraded investment rating causes Sony stock fall
Sony stock fell 5.9 percent in Japan today as two analysts downgraded their investment rating of the company, "citing a loss of competitiveness." Credit Suisse reduced its rating of Sony from "neutral" to "underperform," believing "fundamental changes" are needed to get Sony back on track. The Credit Suisse analyst cut its share-price estimate of the company by 59 percent, to 1000 yen. He predicts Sony's net loss for this fiscal year will be 150 billion yen ($1.66 billion).
Deutsche Bank AG also cut its recommendation from "buy" to "hold," as it lowered its share-price estimate by 49 percent, blaming Sony's "high level of operating costs." It appears drastic measures, and further layoffs, will be necessary to restore investors' faith in Sony Corporation.
[Via GI.biz]
