NTDOF - Nintendo: Direction Of Travel Is Down For The Medium Term

• Nintendo's business historically has been dictated by cycles, and this is unlikely to change. We believe earnings have peaked in FY3/2021, and the direction of travel is down.
• The new 1.51% share buyback program is welcome, but the company's surplus capital is unlikely to be allocated to significant shareholder returns.
• Headline valuations do not look demanding, but given the context of earnings having already peaked and market expectations still looking optimistic, we remain bearish on the shares.

For further details see: