|
March 19th, 2009, 17:50 Posted By: wraggster
A Deutsche Bank analyst, Satoru Kikuchi, has assigned a sell rating to Nintendo's stock, claiming the company has hit its peak and faces a downwards trend.
While he expects Nintendo to report profits this month in excess of guidance, he predicts a decline in profits of 18 per cent the following year, and a further 19 per cent in 2011 "as sales slow".
Kikuchi argued that the videogame giant's profits were likely to "peak and decline after growing on the success of the Wii and the DS," adding that earnings could "return to past levels if the company fails to come up with new blockbuster platforms."
According to Barrons, Kikuchi also argues that Nintendo needs to bring in new long-selling titles to replace the current roster as it grows stale.
The analyst highlighted Japanese sales for both the Wii and DS, which he says have "declined substantially", and although sales in Europe and the US remain "brisk" he warns of an "early fall if content remains unchanged."
Kikuchi's target on the stock is JPY 20,000 yen, (USD 204), compared to Nintendo's currently traded price of JPY 28,620 (USD 292), down 4.18 per cent from the opening value of JPY 29,880 (USD 305) per share.
http://www.gamesindustry.biz/article...e-bank-analyst
For more information and downloads, click here!
There are 0 comments - Join In and Discuss Here
|
|