Nintendo Co (NTDOF – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Atul Goyal from Jefferies maintained a Buy rating on the stock and has a Yen20,780.00 price target.
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Atul Goyal has given his Buy rating due to a combination of factors that highlight the potential for Nintendo’s growth beyond just hardware sales. During recent interactions with investors across various regions, Goyal observed a common misunderstanding of Nintendo’s business model, which is often compared to the printer-cartridge or razor-blade model. This model emphasizes the importance of software and services in driving profitability, rather than relying solely on hardware sales.
Additionally, Goyal points out that many investors are not fully aware of the upcoming Nintendo Switch 2 and its potential impact on the company’s future earnings. By addressing these misconceptions and highlighting the broader aspects of Nintendo’s business strategy, Goyal underscores the company’s potential for sustained growth, thereby justifying the Buy rating.