Video game company Nintendo (NTDOF) has publicly denied a report that it will be setting the wholesale price of the Switch 2 in Japan. The initial report came from Bloomberg and claimed Nintendo would set the wholesale price of the Switch 2 in Japan to allow retailers to generate larger profits.
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According to the report, Nintendo’s wholesale price would allow retailers to generate a 5% profit from each Switch 2 sale. That would be much larger than the typical 2% in profits and would allegedly see retailers more prominently feature the console in their stores. This could help Nintendo reach its goal of 15 million units sold in the console’s first year.
However, Nintendo has denied this report in a post on X, formerly Twitter. The video game company said, “We want to clarify that this report is not true. Nintendo does not disclose any information regarding business conditions with distribution and retail partners.”
Nintendo Stock Analyst Coverage
Nintendo (JP:7974) stock also received updated analyst coverage on Monday. Nomura’s Naruhito Miki reiterated a Buy rating and increased his price target to ¥14,800 from ¥11,900, implying a 26% upside for the shares.
The positive coverage of Nintendo stock comes ahead of the Switch 2’s launch later this week. The company will start selling the handheld/home console gaming device on June 5. It’s priced at $450 in the U.S. Some gamers have run into issues with preorders being canceled in the lead-up to the launch.
NTDOF stock was down 0.56% as of Monday afternoon. However, the stock is still up 43.02% year-to-date and 52.38% over the past 12 months.
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 price target of $90.03, representing a potential 8.1% upside for the shares.
