Nintendo stock downgraded at fears that Wii’s peak has passed

March 21st, 2008 @ 06:50

According to this, KBC has downgraded Nintendo stock to “hold” from “buy” and slashed its 12-month price estimate by 30 percent to 57,500 yen ($580).

Analyst Hiroshi Kamide wrote in a report yesterday that Wii and DS sales in the US and Europe are peaking after “amazing growth” this fiscal year. “We believe that it is reasonable to expect a tougher trading environment.”

From the report:

Nintendo in January increased its forecasts for sales and operating profit for the year ending March 31 for a third time after the Wii outsold rival game players. KBC reduced its outlook for Nintendo’s net income next fiscal year by 8 percent to 391.6 billion yen, DS console shipments by 6 percent, and Wii software sales by 5 percent.

The new estimates are based on an exchange rate of 100 yen to the dollar, compared with a previous assumption of 105 yen, the brokerage said. A stronger yen reduces the value of overseas earnings when repatriated by Nintendo, which gets most of its sales from overseas.

Posted in: DS, Japan, Nintendo, Trade, Wii
Tags: nikkei, stock

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