Expecting NX console disappointment, Macquarie cuts Nintendo to Neutral

Oct. 13, 2016 5:29 PM ETNintendo Co., Ltd. (NTDOY)NTDOYBy: Jason Aycock, SA News Editor18 Comments
  • Running against a general recent bullish tide, Macquarie has downgraded Nintendo (OTCPK:NTDOY) to Neutral, from its previous Outperform rating.
  • A long-in-the-works revamp to the company's consoles -- the NX, with reveal coming next week -- is liable to come at a price that will result in a "major" disappointment for volume sales, the firm says.
  • Speculation is putting the price of the new console between $300 and $350, in line with competing consoles, vs. the Wii's former discount to rival boxes from Sony and Microsoft.
  • The company's move into mobile gaming, Super Mario Run, has a missed opportunity as well, Macquarie says: Being only iOS and ex-China, it's missing 60% of the market.
  • The firm cut its price target on Nintendo to ¥25,900 from a previous ¥27,300, implying some fractional downside from today's closing price of ¥26,075.
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