Nintendo Co's Strong Market Performance and Growth Potential Earns Buy RatingWe expect the mix to improve moving forward (as we explained here). Historical Parallel: FY3/18 vs In FY3/18, Nintendo originally guided for ¥65bn OP (our forecast at that time was ¥179b), it ended up with ¥177.6bn, after posting ¥16bn in Q1. Despite a strong 1Q, guidance wasn't revised until after Q2. FY3/26 mirrors this, with Q1 OP of ¥57bn (~18% of the ¥320bn target). We estimated Q1 would represent 9-10% of the FY result, suggesting upside risk to OP ~ ¥600bn (our current est. ¥500bn, Cons. ¥400bn, Co guide ¥320bn). Nintendo's conservative guidance reflects a pattern, not weakness.