Sony Corporation (SNE - Free Report) signed a partnership agreement with Bosch Security Systems, under which the two companies will pool their resources for the development of pioneering products and solutions in the field of video security applications.
The partnership effectively begins in early 2017 and is subject to approval by the antitrust authorities.
The partnership will integrate Sony’s unique imaging technologies, such as high resolution solutions like 4K and terrific light sensitivity, with Bosch’s state-of-the-art video analytics and bitrate management. Bosch’s technology will help interpret data as well as achieve highly efficient bitrates with minimum storage requirements.
Their combined technological capabilities in video surveillance will enable the companies to create solutions that deliver optimum image quality in all lighting conditions, in addition to superior video analytics and bitrate performance. Thus, this will set new standards in high-resolution and low light video imaging.
As part of the deal, the sales and marketing organization of Bosch Security Systems will serve and support Sony’s video security customers in all markets except Japan.
SONY CORP ADR Price and Consensus
Changing market dynamics of the global video surveillance equipment market have intensified competition in the same, and this deal will enable Sony and Bosch to pool technology and resources, in addition to offering greater access to foreign markets.
Going forward, we expect Sony to continue shifting gears in its growth plans, reflecting changing trends of the fast-evolving industry.
Sony has been recently facing pressure owing to weaknesses in a number of its businesses, which is anticipated to hurt its financials in the near term. Factors like cutthroat competition and weakness in cameras and image sensor business add to the company’s challenges. Also, the Kumamoto earthquakes have significantly aggravated problems for this Zacks Rank #3 (Hold) company by affecting its Devices segment and IPS segments heavily.
Stocks to Consider
Some better-ranked stocks in the sector include Capella Education Co. (CPLA - Free Report) , Intrawest Resorts Holdings, Inc. (SNOW - Free Report) and Harman International Industries, Incorporated , each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Headquartered in Minneapolis, MN, Capella Education, through its wholly owned subsidiaries, provides online post-secondary education services in the U.S, focused primarily on working adults. The company has an excellent earnings surprise history, beating estimates all through in the trailing four quarters. It boasts an average positive surprise of 10.9%.
Intrawest Resorts Holdings operates as a mountain resort and adventure company which delivers vacation and travel experiences to its customers. The company managed to beat earnings twice in the trailing four quarters and has an average positive surprise of 2.2%.
Harman International is engaged in developing, manufacturing and marketing audio products and electronic systems. The company has topped estimates thrice in the trailing four quarters, with an average beat of 6.5%.
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