Investors seeking exposure to Japan's growing gaming industry should look at technology and entertainment behemoth Sony , according to Goldman Sachs.
Goldman expects shares of Sony Group Corporation to rise by 25% to 16,000 yen ($107) over the next 12 months.
In addition, Goldman Sachs said there was significant growth potential for Crunchyroll, Sony's anime streaming service based in California, which it acquired in 2017.
"Our team estimates that overseas markets will account for 80% of Japanese anime sales by 2036," the bank's report said.
As earnings contributions from Crunchyroll and GaaS titles become more apparent starting in fiscal year 2025, Goldman Sachs sees an increase in consensus earnings estimates and valuation multiples.
Persons:
Goldman Sachs, FactSet
Organizations:
Sony, Bungie, Goldman, Sony Group Corporation, New York Stock Exchange, SONY, Microsoft, Activision Blizzard
Locations:
Tokyo, California