Nintendo shares have risen by around 20% since the launch of the Nintendo Switch last month. Sales of the console have broken records for the company, encouraging investors to purchase Nintendo stock.
Earlier today, Nintendo shares were around the $30, having risen by around 5.4% this week alone. In a note sent to would-be Nintendo investors, Atul Goyal, an analyst at Jefferies Equity Research, said that Nintendo shares could even reach as much as $43 by the year’s end.
In addition to offering a prediction on the price of Nintendo shares, Goyal also offered some thoughts on the growing games line-up for the system. With the console’s ongoing success, says the analyst, the Nintendo Switch will surely be able to attract more third-party publishers in the future.
It should be noted that while the company has already confirmed a large pool of third-party partners, not all of them have announced games for the platform, nor have they stated that their major releases will get Switch ports. Red Dead Redemption 2 may not get a port, for example, as it’s said that the companies behind the game don’t think it’s worth it. But clearly as the Switch user base grows in size, third parties will think again, which will in turn help Nintendo sell even more consoles.
Goyal also says that the console’s “solid” first party line-up throughout the year is also a factor. Multiplayer sequel Splatoon 2 and new IP ARMS have already garnered significant interest while the reviews for Mario Kart 8 Deluxe (a Switch exclusive version of the game) also suggest that it could be a hit. Provided that all of these games stick the landing, and Nintendo could have itself a giant list of system sellers.
While Goyal is just one analyst, Nintendo does have plenty of reasons to celebrate given how dire the company’s finances looked just a year or two ago. With sales of the Wii U having practically ground to a halt and with the company then having not entered the mobile games market, many were concerned about Nintendo and unsure of how it could get itself back on track. There were even doubts that the Switch could appeal to disillusioned gamers who weren’t interested in the Wii U.
Nintendo has so far managed to prove naysayers wrong, though, and the company will now be doing everything in its power to make sure this good run continues.
The Nintendo Switch is available now.