Nintendo's stock is in the middle of its best run in a decade. Shares of the video game console maker are up 61.14% in the last year at ¥27,620 ($31.65 NTDOY ADR).
ADVERTISEMENT
MORGAN STANLEY: Nintendo's Switch is 'insufficiently priced into the stock' (NINTENDO, NTDOY)
Nintendo's newest console, the Nintendo Switch has been out since March 3 and the product is red hot.
Nintendo of America President and COO Reggie Fils-Aime debuts the groundbreaking Nintendo Switch at a press event in New York on Jan. 13, 2017.
ADVERTISEMENT
A good portion of that move can be attributed to Nintendo's newest console, the red-hot Switch.
In a note circulated to clients on April 24, Morgan Stanley analyst Masahiro Ono resumed coverage of Nintendo stock with an "Overweight" rating and ¥33,000 price target, implying 18% of upside for the stock.
Ono believes the Switch is on its way to being a big hit, maybe even as big as the original Wii. Ono projects annual sales of the Switch will grow for the next three years from 8.7 million in 2018 to 18 million in 2020. Only by 2021 will sales begin to fall off, Ono said, but still to an impressive 12.5 million. In total, he sees sales of 54 million Switch units. Here's Ono:
FOLLOW BUSINESS INSIDER AFRICA
ADVERTISEMENT
Recommended articles
Changes in the net worth of Africa's 10 richest men since January
France to back Morocco's power link to Western Sahara
Kenya’s Ruto backs Zimbabwe’s ZiG currency for economic prosperity
Here’s another reason Nigeria is losing billions of dollars annually
Top 10 African countries with the lowest fuel prices in April 2024
How SafeHamsters unlocks the potential of crypto betting| Insider Tips
A look into the diverse tax reforms being implemented across Africa
Dubai firm to lend South Sudan $12.9 billion in exchange for 20 years oil repayment