KBC Securities Japan has downgraded Nintendo's stock investment rating and target price due to concerns over a drop in demand for Wii and DS systems.
DS and Wii sales are currently peaking in the US and Europe where Nintendo achieves most of its sales, according to KBC analyst Hiroshi Kamide, who said it is now "reasonable to expect a tougher trading environment."
Bloomberg reports that Kamide has lowered Nintendo's stock investment rating from "buy" to "hold" and cut Nintendo's twelve-month price estimate by 30 percent to 57,500 yen ($580).
The firm has also reduced its outlook for Nintendo's net income for the next fiscal year by eight percent to 391.6 billion yen, forecasting a six percent reduction in DS console shipments and a five percent drop in Wii software sales.
Courtesy ofNext Generation.
Mar 20, 2008