In a note sent out to clients on Wednesday, Jefferies analyst Atul Goyal reiterated his buy rating and $43 a share price target on the Japanese game maker. That represents a potential gain of 46%.
Nintendo shares tumbled 12% to 15% in both October 2016 and January 2017 after the company revealed details about its new console, but now that the console is out, Goyal says that Wall Street analysts had it all wrong.
"For a game console, we could have expected such a strong response in holiday season but we did not expect this to happen in the month of March," Goyal wrote.
In fact, consumers are paying exorbitant premiums to buy the console from third parties, 60%-100% above Nintendo's price. A good omen, Goyal says.
Submitted April 06, 2017 at 11:37AM by vegaseller http://ift.tt/2o1w7AY
