Sony Group Corporation (SONY) is a Buy amid Robust Operating Profit Growth and Buyback Program

Core Viewpoint - Sony Group Corporation is recognized as a strong investment opportunity in the augmented reality sector, with a consensus Moderate Buy rating and a price target increase to $34.75 from $30.25 due to robust operating profit growth and a significant share buyback program [1][2][3]. Financial Performance - In the second quarter, Sony reported revenue of $20.14 billion, with operating profit rising 10% year-over-year to $2.76 billion [3]. - The company announced a share buyback program valued at $648 million, reflecting confidence in its financial health [3]. - Sony expects its full-year operating profit to increase by 8% from previous forecasts and has raised its annual revenue projection by 3% [4]. Business Segments and Growth Drivers - Growth is anticipated to be driven by the imaging and sensing solutions segment, as well as the music segment [4]. - Sony is positioned as an augmented reality enabler, developing technologies such as Micro-OLED and OLED microdisplays, which are essential for AR/VR headsets and smart glasses [5]. - The company introduced an XR head-mounted display featuring 4K OLED microdisplays in 2024 and joined the AR Alliance, highlighting its commitment to the augmented reality ecosystem [5].