Nintendo stock (NTDOF) jumped after Goldman Sachs (GS) said it expects the upcoming launch of the Switch 2 console will drive user growth, while various reports suggested the device would be released imminently.
The full reveal of the Nintendo Switch 2 is slated for next week, and various sources told Insider-Gaming that the new console will launch in June. Another report indicated Nintendo is likely to announce a pre-order date of April 2nd. It has previously been hinted that the console could be released in May.
Though none of this has been confirmed, investors bought into Nintendo stock on the rumours, with shares listed in Japan (JP:7974) rallying over 5% to post their best day in seven months.
Gamers Eager for New Switch 2
The company behind Super Mario said in January that it would roll out the successor to the nearly-eight-year-old Switch console this year, teasing its launch with little in the way of details about what it to follow. However, analysts are hopeful that it will spur renewed earnings growth for Nintendo.
Resuming coverage of 11 stocks in Japan’s games, entertainment, and internet sector, Goldman Sachs analysts slapped a Buy rating on Nintendo, saying the new device would see active console volumes “continue hitting fresh highs” while earnings are point to enter a renewed growth phase.
Based on the Switch 2 teaser video released in January 2025, the concept and gameplay for the new console appear similar to the original Switch, analyst Minami Munakata said in the research report, which was reported by the Wall Street Journal.
“Therefore, we believe that the unique feature of the platform–allowing family and friends to play games together in person either as a game console or as a handheld console–will make it easier for Nintendo to unlock dormant hardware and dormant users,” they wrote.
Eight years on from the original console and with a successor on its way, gamers are holding off on purchases until its release. Last month Nintendo slashed full-year sales forecasts for its Fiscal year 2024, projecting sales of 11 million Switch devices for the year to the end of March, down from 12.5 million guided previously. It also cut its guidance on software sales to 150 million from 160 million.
Is NTDOF Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Nintendo is Moderate Buy based on six Buy, two Hold, and one Sell ratings over the last three months. With that comes an average price target of $79.45, which represents about 10% upside for NTDOF stock.
