Atul Goyal, an analyst from Jefferies, maintained the Buy rating on Nintendo Co. The associated price target remains the same with Yen20,840.00.
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Atul Goyal has given his Buy rating due to a combination of factors that highlight Nintendo Co.’s strong financial performance and promising outlook. The company’s net profit for the second quarter of fiscal year 2026 surged significantly by 270% year-over-year, reaching ¥103 billion. Operating profit also increased by 32% year-over-year, surpassing both consensus and Jefferies’ estimates, driven by robust sales of Nintendo Switch 2 first-party software.
Furthermore, Nintendo sold 10.4 million units of the Nintendo Switch 2 hardware in the first half of the fiscal year, and with an impressive lineup for the holiday season, the company’s guidance of 19 million units sold appears conservative. Additionally, Nintendo’s operating profit guidance for the fiscal year was raised from ¥320 billion to ¥370 billion, which also seems conservative. These factors collectively suggest a strong growth trajectory for the company, justifying the Buy rating.