Atul Goyal, an analyst from Jefferies, maintained the Buy rating on Nintendo Co (NTDOF – Research Report). The associated price target remains the same with Yen15,440.00.
Atul Goyal has given his Buy rating due to a combination of factors that highlight Nintendo’s strategic pricing and market positioning. Despite concerns about the pricing of the new Switch 2 console, Nintendo has decided to maintain its set prices, which reflects strong inventory and cost management. This decision is supported by several economic indicators, including inflation, GDP per capita, wages and salaries, the cost of AAA games, and research and development spending.
Goyal believes that the demand for the new Switch 2 will significantly surpass its supply, despite some online criticism about the pricing being too high. The anticipation for the product is evident as pre-orders are set to begin soon, reinforcing the analyst’s confidence in Nintendo’s market strategy and the potential for strong financial performance in the upcoming fiscal year.