Nintendo's stock is in the middle of its best run in a decade. Shares of the video game console maker are up 61.14% in the last year at ¥27,620 ($31.65 NTDOY ADR).
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MORGAN STANLEY: Nintendo's Switch is 'insufficiently priced into the stock' (NINTENDO, NTDOY)
Nintendo's newest console, the Nintendo Switch has been out since March 3 and the product is red hot.
Nintendo of America President and COO Reggie Fils-Aime debuts the groundbreaking Nintendo Switch at a press event in New York on Jan. 13, 2017.
A good portion of that move can be attributed to Nintendo's newest console, the red-hot Switch.
In a note circulated to clients on April 24, Morgan Stanley analyst Masahiro Ono resumed coverage of Nintendo stock with an "Overweight" rating and ¥33,000 price target, implying 18% of upside for the stock.
Ono believes the Switch is on its way to being a big hit, maybe even as big as the original Wii. Ono projects annual sales of the Switch will grow for the next three years from 8.7 million in 2018 to 18 million in 2020. Only by 2021 will sales begin to fall off, Ono said, but still to an impressive 12.5 million. In total, he sees sales of 54 million Switch units. Here's Ono:
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