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)
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