Nintendo’s stock bounces off 16-month low after Wedbush analyst turns bullish

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The U.S.-listed shares of Nintendo Co. Ltd. NTDOY, +1.06% 7974, +0.74% bounced 2.1% in afternoon trading Thursday, after Wedbush analyst Michael Pachter turned bullish on the Japan-based videogame and game console maker, citing “valuation and a favorable holiday setup.” The rally comes after the stock closed Wednesday at the lowest price since June 10, 2020. Pachter raised his rating to outperform, after being at neutral since June 24, 2020, saying the recent selloff has provided a “compelling entry point” for investors. “Nintendo is well-positioned to have a strong holiday season and fiscal year end driven by multiple factors that should drive material upside to full-year guidance,” Pachter wrote in a note to clients. He said Nintendo’s Switch hardware continues to perform well at retail, and the launch of the Switch OLED (organic light-emitting diode) model is likely to boost hardware momentum. And heading into the holiday season, Pachter said Nintendo should have some of the industry’s most popular games, including “Metroid Dread,” “Pokémon Brilliant Diamond,” and “Pokémon Shining Pearl.” The company is scheduled to report fiscal second-quarter results on Nov. 4. The stock has tumbled 19.7% over the past three months, while the S&P 500 SPX, +0.19% has gained 4.3%.

This article was originally published by Marketwatch.com. Read the original article here.

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