Nintendo stock initiated at Hold by Freedom Broker, citing Switch 2 risks

Published 04/09/2025, 22:04
Nintendo stock initiated at Hold by Freedom Broker, citing Switch 2 risks

Investing.com - Freedom Broker initiated coverage on Nintendo Co Ltd. (7974:JP) (OTC:NTDOY) with a Hold rating and a price target of JPY13,340.00 per share.

The price target reflects a 30x price-to-earnings multiple applied to Freedom Broker’s FY:28 EPS estimate of JPY390, plus JPY1,640 of cash per share.

Freedom Broker noted that Nintendo shares trade at a premium to the video game industry’s historical forward P/E multiple of 20x, but views this premium as justified given positive momentum heading into the Switch 2 cycle.

The research firm highlighted potential risks in Nintendo’s strategy, specifically mentioning "a steep price point and limited new software" for the upcoming Switch 2 console.

Despite these concerns, Freedom Broker acknowledged that Nintendo’s current business momentum supports the premium valuation compared to industry peers.

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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