Trump to visit Fed on Thursday amid Powell feud, renovation probe
On Monday, CLSA analysts adjusted Nintendo Co Ltd’s (TYO:7974:JP) (OTC:NTDOY) financial outlook, raising the price target to JPY8,600 from the previous JPY7,800. Despite the increase, the firm maintained its Underperform (4) rating on the stock. This adjustment follows a proprietary survey conducted by CLSA, which included over 1,200 owners of Nintendo’s Switch gaming console across the Americas, Europe, and Japan.
The survey revealed that consumers showed a strong preference for improved features of the original Switch in the upcoming Switch 2, rather than new functionalities. The findings also indicated a mix of expectations from U.S. respondents concerning the pricing of the Switch 2 hardware and software. There was a concern about potential tariff-related price increases that could affect the product’s cost.
CLSA updated its forecasts for Nintendo after analyzing the survey results, which led to the increase in the price target. The analysts believe the new target better reflects the potential financial performance of the company, considering the market’s anticipation for the Switch 2 and its features. However, the Underperform rating suggests that CLSA analysts remain cautious about Nintendo’s stock performance relative to the market.
The survey highlighted the importance of the Switch 2’s pricing strategy, as it could be a critical factor for Nintendo’s success in the highly competitive gaming market. Concerns about tariffs and their impact on pricing further complicate the forecast for Nintendo’s financial future.
In summary, CLSA’s revised price target for Nintendo reflects updated projections based on consumer feedback and market conditions. The firm’s analysts continue to watch closely as Nintendo prepares for the launch of the Switch 2, considering both the potential upsides and the risks that lie ahead.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.