Nintendo (NTDOF) stock is down on Monday and this could be the perfect time for investors to buy shares of the video game company. Five-star Jefferies analyst Atul Goyal advises medium and long-term investors to buy dips in NTDOF stock as the company has a bright future ahead of it with the upcoming Nintendo Switch 2 launch.
Nintendo will release the Switch 2 sometime this year, with the latest reports suggesting a launch between May and June. This will be a major catalyst for the company as it will likely include heavy unit sales and sales for new software launching for the game console this year. Goyal has forecasted a fourfold increase in operating profit at Nintendo over the next four years due to the Switch 2.
The Nintendo Switch 2 will feature a larger screen and more powerful components than the Switch. Demand for the console could be huge, with some analysts expecting it to outperform the Switch in year-one sales. If that momentum continues throughout the console’s life, it could overtake Switch sales, making it one of the best-selling consoles ever. More details about the device will be revealed in a Direct on April 2.
NTDOF Stock Rating and Price Target
Goyal reiterated his Buy rating for Nintendo stock and $103.51 price target. That represents a potential 50.88% upside for NTODF shares. Goyal is the most bullish analyst covering Nintendo, with the largest price target among his peers.
Goldman Sachs also recently initiated coverage of NTDOF stock with a Buy rating and $91.17 price target. This represents a possible 32.9% upside for the video game developer.
Is NTDOF Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus for Nintendo is Moderate Buy based on six Buy, two Hold, and one Sell ratings over the last three months. With that comes an average price target of $79.81, a high of $103.51, and a low of $47.60. This represents a potential 16.33% upside for NTDOF stock.
