In a report released today, Atul Goyal from Jefferies maintained a Buy rating on Nintendo Co (NTDOF – Research Report), with a price target of Yen15,440.00.
Atul Goyal has given his Buy rating due to a combination of factors that suggest a promising future for Nintendo Co. With the anticipated launch of the NS2, Goyal has incorporated various assumptions regarding hardware, software, and tie-ratio into his model, which indicate potential growth.
The expected increase in earnings is supported by several factors, including higher software prices, a rise in digital sales, increased demand for first-party software, and significant third-party support. Goyal believes that the peak earnings cycle for the NS2 is still 3-5 years away, mirroring the timeline observed with previous cycles. This long-term outlook presents a favorable risk-reward scenario for investors.
In another report released on February 21, J.P. Morgan also maintained a Buy rating on the stock with a Yen13,600.00 price target.