Atul Goyal, an analyst from Jefferies, maintained the Buy rating on Nintendo Co. The associated price target was raised to Yen21,260.00.
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Atul Goyal has given his Buy rating due to a combination of factors that point to durable earnings growth at Nintendo. He views the upcoming Switch 2 hardware as a notably strong product and sees an outstanding pipeline of first-party and third-party games supporting that platform. In addition, he believes expanding exposure through movies and theme parks will deepen user engagement with Nintendo’s franchises and reinforce the company’s ecosystem over the long term.
Goyal also argues that rising memory costs will be a much bigger problem for rival platforms, while Nintendo is comparatively well positioned. He highlights that Nintendo can cushion cost pressures through savings in other hardware components, potential pricing levers, and its high-margin software business, where software profits are a multiple of hardware profits. Reflecting this confidence, he modestly lifts his earnings forecasts and raises his price target to ¥21,260, implying substantial upside alongside an attractive projected dividend yield, supporting his Buy recommendation.