Nomura Securities Upgrades Nintendo (NTDOY) to Buy; Headed in Right LT Direction

October 14, 2016 7:56 AM EDT
Get Alerts NTDOY Hot Sheet
Price: $30.60 -5.47%

Rating Summary:
    3 Buy, 1 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 14 | Down: 11 | New: 8
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Nomura Securities upgraded Nintendo (OTC: NTDOY) from Neutral to Buy and raised its price target to JPY 32,000 from (JPY 15,200), saying it is headed in the right strategic direction from a longer-term perspective.

Analyst Junko Yamamura commented, "We think the success of Pokémon GO and the announcement of Super Mario Run heralds a change in earnings structure at Nintendo. We think the company's longerterm profit structure will be one in which operating profits from the online business provide support to medium-sized hits at the console business, which has a five-year cycle. We have changed our valuation methodology from P/E to DCF because we think prospects of stable, consistent operating profit growth have risen. We obtain our target price of ¥32,000 via a DCF model that assumes WACC of 6.4% and raise our rating from Neutral to Buy."

For an analyst ratings summary and ratings history on Nintendo click here. For more ratings news on Nintendo click here.

Shares of Nintendo closed at $31.22 yesterday.

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