By Tae Kim
Nintendo is poised to grow its profits significantly for the next several years following the launch of its Switch 2 console -- prompting one analyst to reiterate that shares are worth snapping up.
On Monday, Jefferies analyst Atul Goyal reiterated his Buy rating on Nintendo and raised his price target to 15,580 Japanese yen from 15,440. The new forecast is 37% above the current price level.
The Switch 2 "marks a historic shift in Nintendo's ecosystem, with unprecedented 3P [third party] support from major game companies," he wrote. The console is "launching with a robust 3P lineup."
The analyst said Nintendo's relationships with other publishers improved during the original Switch product lifecycle. He expects the company's operating profit to go up by more than four times over the next three years, boosted by the software support.
"Nintendo has the most powerful IP portfolio in the game industry," Goyal wrote.
Earlier this month, Nintendo said the price of the console will remain starting at $449.99 after it briefly paused preorders for the console, citing uncertainty over tariffs. Pricing for the games Mario Kart World and Donkey Kong Bananza also stayed unchanged at $79.99 and $69.99, respectively.
The Switch 2 will be released on June 5.
Nintendo's American depositary receipts were unchanged on Tuesday. The stock is up 39% this year.
Write to Tae Kim at tae.kim@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
April 29, 2025 13:56 ET (17:56 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。