Phil Elliott
09:45 (BST)
20/03/2008
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Nintendo downgraded over demand concerns
Analyst drops 30% from price estimate in "tougher trading environment"
KBC Securities Japan has lowered Nintendo's stock investment rating from "buy" to "hold", and cut its price target by 30 per cent to JPY 57,500 (EUR 371.2 / USD 575.5) amid fears that demand for the Wii and DS consoles is slowing.
According to analyst Hiroshi Kamide the company believes "that it is reasonable to expect a tougher trading environment," reports Bloomberg.
KBC reduced its outlook for Nintendo's net income for the next financial year by 8 per cent to JPY 391.6 billion (EUR 2.53 billion/ USD 3.92 billion), citing 6 per cent lower DS console shipments and 5 per cent lower Wii software shipments.
Nintendo has raised its guidance three times over the past year, most recently in January, for the financial year ending March 31 - but the strengthening yen will cause the value of overseas sales to drop, which could impact the next financial year.
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