Trump to visit Fed on Thursday amid Powell feud, renovation probe
Jefferies raised its price target on Nintendo Co Ltd. (TYO:7974:JP) (OTC:NTDOY) to JPY20,780.00 from JPY20,220.00 on Thursday, while maintaining a Buy rating following the successful launch of the Nintendo Switch 2 console. According to InvestingPro data, Nintendo’s stock is trading near its 52-week high of $22.08, with a robust market capitalization of $95.7 billion.
The Nintendo Switch 2 sold over 3.5 million units globally in just four days after its June 5 launch, according to Jefferies. The sales figures outpace comparable console launches, including the original Nintendo Switch which sold 2.74 million units in its first month of availability in March 2017.
The new console’s performance also surpassed Sony (NYSE:SONY)’s PlayStation consoles, with the PS4 selling 2.1 million units in two weeks and the PS5 reaching 3.4 million units after one month on the market.
Jefferies has increased its three-year sales forecast for the Nintendo Switch 2 to 69 million units from 66 million units, noting the console is demonstrating "a steeper curve than Switch 1." The firm indicated the strong launch represents approximately 20% of its fiscal year 2026 forecast.
The investment firm projects Nintendo will achieve more than four times operating profit growth over the next three years based on the console’s early sales performance. With a gross profit margin of 61% and analysts forecasting significant sales growth, Nintendo shows promising momentum. Discover 15 additional key insights about Nintendo on InvestingPro.
In other recent news, Nintendo Co Ltd has been in the spotlight with several developments surrounding its new gaming console, the Nintendo Switch 2. Jefferies analysts have increased their price target for Nintendo to ¥20,220, maintaining a Buy rating, citing strong pre-orders and immediate sales success of the Switch 2. Benchmark analyst Mike Hickey also raised the price target to JPY 13,000, despite a reported decline in fiscal 2025 results, attributing future growth to the Switch 2’s launch. Meanwhile, Citi initiated coverage with a Buy rating and a price target of JPY14,000, highlighting the potential for profit growth through the new console and a robust software lineup.
The launch of the Switch 2 is scheduled for June 5, 2025, with Super Mario Kart World as a launch title, although Nintendo has paused preorders in the U.S. due to new tariffs on Japanese imports. The company is assessing the impact of a 24% tariff imposed by President Donald Trump, which has prompted Nintendo to reevaluate its sales strategy. Despite these challenges, Nintendo’s management has set ambitious targets for fiscal 2026, forecasting significant growth driven by the Switch 2. The company has yet to announce how these tariffs might affect the console’s retail price or distribution strategy. Investors and consumers are keenly awaiting further updates on how Nintendo will navigate these market conditions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.