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Analysts predict bright future for Nintendo, mobile content set to help

by rawmeatcowboy
20 June 2015
GN Version 5.0

Coming from Rupal Bhansali, the chief investment officer of international equities at Chicago-based Ariel Investments...

- stock can go up another 50% over a one-to-two-year time frame

- revenue is likely to bottom this year at $4.48 billion, based on analyst forecasts

- for the year ending in March 2017, sales could jump 17%, to $5.25 billion

Coming from Atul Goyal, a longtime Nintendo bull...

- Nintendo ultimately could match its heyday in 2008, when Ebitda (Earnings Before Interest, Taxes, Depreciation and Amortization) hit $5.6 billion

- it could get 25% of the total smartphone-game market, which research firm IDC puts at $40.5 billion by 2018

- at a reasonable 50% margin, that’s $5.1 billion worth of profit for Nintendo

- “The casual-gaming market moved to the mobile platform, but Nintendo did not. Now the world’s largest casual-gaming company is moving to the world’s largest casual-gaming platform. In two years’ time, it’s not impossible that Nintendo could have five of the top 10 mobile games.”

- 12-month price target is $30 for the ADR

- thinks Nintendo shares could return to their 2007 high near $80 in the next two to three years

- even minimal success in smartphones puts the stock’s floor at about $17