Nintendo (NTDOY) Stock Gains, Deutsche Bank Downgrades

Nintendo (NTDOY) stock is climbing this morning despite Deutsche Bank dropping its rating on the company to ‘hold.’
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Shares of Nintendo  (NTDOY) are gaining 1.85% to $34 in pre-market trade despite a downgrade at Deutsche Bank to "hold" from "buy."

The firm said that Nintendo's latest gaming craze, Pokemon Go, is "a genuine phenomenon."

"While we have argued there is potential for its non-conformist past to be repeated and for the NX console to revolutionize the gaming sector, we need to see further hard evidence to model in significant further upside," Deutsche Bank said of the Japanese gaming company.

The firm said the company faces risks such as cooling Pokemon Go hype, lackluster smartphone games and NX launch and an appreciating Japanese Yen.

Potentials for upside, however, include a structural change in Pokemon Go creator Niantic's ownership and greater monetization of Pokemon Go, NX and other smartphone games.

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