Nintendo plunges on warning, Jefferies takes contrarian position

|About: Nintendo Co., Ltd. ADR (NTDOY)|By:, SA News Editor

Nintendo (NTDOY -14.9%) shares plunge after the company reversed itself on projections, issuing guidance for a ¥35B loss in the FY ending March.

Jefferies, however, raised its PT to ¥29K (shares currently trade at ~¥14.6K) and reiterated a Buy rating, noting that "Our Buy thesis on Nintendo has been predicated on the company missing the President's 'commitment' of ¥100b OP and being forced to change."

Jefferies predicates its contrarian view on the notion that Nintendo's failure will force it to move into mobile: "We believe Mario on mobile is coming."