Benzinga | Jan 20, 2022 11:31AM EST

Morgan Stanley Picks Sony As 'Research Tactical Idea'

* Morgan Stanley analyst Masahiro Ono named Sony Group Corp (NYSE:SONY) a "Research Tactical Idea."

* Ono sees the share price rising relative to the country index over the next 45 days because the stock has traded off recently to make the short-term valuation "much more compelling."

* The share price is off 9% after Microsoft Corp (NASDAQ:MSFT) announced it would acquire Activision Blizzard Inc (NASDAQ:ATVI).

* Related Content: Why The $70B Activision-Microsoft Deal Could Hurt Sony

* Still, he thinks the stock is oversold when considering the size of the contribution of the core title "Call of Duty" to overall Sony Group sales.

* He maintained an Overweight rating and 18,000 yen price target on Sony shares. The price target implies an upside of 45% to the January 19 closing price.

* Price Action: SONY shares traded higher by 5.13% at $115.68 on the last check Thursday.