Jefferies raises Nintendo stock price target after Switch2 launch

Published 05/06/2025, 17:28
Jefferies raises Nintendo stock price target after Switch2 launch

On Thursday, Jefferies analysts increased the price target for Nintendo Co Ltd. (TYO:7974:JP) (OTC:NTDOY) to ¥20,220 from ¥15,580, maintaining a Buy rating. The adjustment follows the global launch of the Switch2, which reportedly sold out in many locations and attracted long queues worldwide.

The analysts noted that pre-orders for the Switch2 were already strong, but the immediate sales performance and positive feedback have prompted an upward revision of their estimates. Earlier this year, they had forecasted shipments of 15 million, 20 million, and 25 million units over the first three years, aiming for a cumulative install base of 60 million by the end of fiscal year 2028.

In May, Nintendo itself projected shipments of 15 million units for fiscal year 2026. However, the robust consumer demand and favorable early reviews have led Jefferies to revise their estimates to 17 million, 22 million, and 27 million units, aiming for a 66 million install base by 2028.

The analysts expressed confidence in Nintendo’s ability to manage the Switch pipeline effectively, citing the company’s track record as a positive factor. They believe the strong consumer interest and hands-on experiences with the Switch2 support their optimistic outlook.

The launch of the Switch2 and its initial success reflect Nintendo’s continued influence in the gaming industry, with the new console generating significant interest from both consumers and analysts alike.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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