Pokémon GO, by Nintendo Co., Ltd (ADR) NTDOY, witnessed substantial success during the initial few days since its launch into three countries, Deutsche Bank’s Han Joon Kim said in a report. He maintained a Buy rating on the company, with a price target of JPY23,600.
Kim commented that Pokémon Go was “a “leadoff hitter” for Nintendo’s foray into mobile gaming.” He added that the “big hitters” would likely be Animal Crossing and Fire Emblem, which were scheduled for launch in fall 2016, as well as Zelda for mobile, which would possibly be seen in spring 2017.
Retention Is Key To Success
Although Pokémon Go has had a strong start, retention would be critical to its financial success, Kim mentioned. He added, “The company has stopped rolling out to new countries, as demand is overloading its server capacity. How Niantic deals with issues in the coming weeks will determine the longer-term financial success of Pokémon Go, in our view.”
The analyst believes Nintendo’s future mobile pipeline will materially impact the company’s financials.
Forex headwinds may exert pressure on Nintendo’s stock in the near term, and any dips would represent “a particularly attractive buying opportunity,” Kim stated.
Did you like this article? Could it have been improved? Please email feedback@benzinga.com to let us know!
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.