Sony Corp bounced from two-month lows after the electronics conglomerate said this year's operating profit would match last year's, easing worries about the impact of the March earthquake. In its first estimate for the year to March 2012, Sony said operating profit would come in around 200 billion yen (USD 2.44 billion), prompting Macquarie to upgrade its rating on the stock to outperform from neutral. Morgan Stanley, Credit Suisse and UBS reiterated their overweight, buy or outperform ratings. Separately, Sony said on Tuesday websites in three countries were hacked and personal information for 8,500 people were leaked from its Greek Sony Music Entertainment website, in the latest of a series of security breaches. The company said all three sites had been taken down and that no credit card information had been registered. Analysts said Sony had provided markets with a realistic view of the impact of the quake and a PlayStation network hacking incident, both of which had weighed on the shares. Sony said it expects the quake and the hacking incident to drag down operating profit by 164 billion yen in the current financial year. In contrast, the decline in Sony's market capitalisation of 264 billion yen since the quake "looks overdone," Macquarie analyst Jeff Loff wrote in a report. "With shares cheap and cost impacts one-time in nature, we expect the stock to reverse its fall." Sony expects to report a net loss of 260 billion yen (USD 3.2 billion) for the year ended March 31, its third straight annual net loss, after writing of tax credits following Japan's earthquake and tsunami.
LINK TO OUR HOME PAGE :