Deutsche Bank Times Nintendo Upgrade...Perfectly
Wall Street’s reputation for bending the rules always leads to raised eyebrows in the trading community when a firm times a call on a stock a little too well.
Apparently, Deutsche Bank had one of these spectacularly well-timed calls on Nintendo Co. Ltd. (ADR) (OTC: NTDOY) on Wednesday when it upgraded the stock from Hold to Buy. Hours later, the stock spiked 28 percent when the company announced it's bringing several new games to Apple Inc. (NASDAQ: AAPL)’s mobile platforms in coming months, including “Super Mario Run."
Nintendo stole the show from Apple at its own iPhone 7 media event as investors cheered the news buy piling into Nintendo stock.
Analyst Han Joon Kim gave his own reasons why he believes Nintendo’s 2Q17 earnings have room for upside:
- 1. He expected news on the company’s new NX console by the end of the year.
- 2. He anticipated a November release of smartphone games “Animal Crossing” and “Fire Emblem.”
- 3. He expected positive earnings contributions from Pokemon GO, existing 3DS hardware and Nintendo’s sale of its Seattle Mariners stake.
Shares of Nintendo's ADRs traded recently at $34.11, down 6 percent.
Latest Ratings for NTDOY
|Sep 2016||Deutsche Bank||Upgrades||Hold||Buy|
|Jan 2015||Bank of America||Initiates Coverage on||Underperform|
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