Nintendo Stock (NTDOF) Receives a Bullish Price Target Following the Switch 2 Launch

Nintendo (NTDOF) stock got a boost on Monday after an analyst updated their coverage of the video game company’s shares. Five-star Jefferies analyst Atul Goyal reiterated a Buy rating and increased his price target for NTDOF stock to $139.58 from $107.55, suggesting a 64.23% upside for the shares.

Goyal’s updated coverage of Nintendo stock comes after the launch of the Switch 2 late last week. This is Nintendo’s newest video game console and the successor to the original Switch. Hopes are high for the Switch 2, as the Switch was a massive success with 152.12 million units sold.

The launch weekend for the Switch 2 appeared to go over well, with preorders largely sold out. However, there were reports of stores having plenty of Switch 2 units on hand. This has raised concerns that demand for the Switch 2 wasn’t as high as expected, but it could also be a sign that Nintendo accurately anticipated demand and supplied enough units to avoid shortages.

Microsoft Enters the Handheld Console Market

In related news, Microsoft (MSFT) plans to challenge Nintendo in the handheld gaming sector. The company announced two new handheld consoles: the ROG Xbox Ally and ROG Xbox Ally X. These are set for release in Holiday 2025, but no prices have been announced.

Microsoft’s challenge to Nintendo is an uphill battle as Xbox doesn’t have a firm grip on the handheld gaming market. It’s avoided the space for years, never dedicating the resources needed to carve out a space in it. This newest move changes that, but it might be too late to try and usurp Nintendo’s reign.

Is Nintendo Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for Nintendo is Moderate Buy, based on eight Buy, two Hold, and a single Sell rating over the past three months. With that comes an average NTDOF stock price target of $92.07, representing a potential 10.65% upside for the shares.

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